State sales tax collections up 12.8 percent in April

State sales tax revenue totaled $3.83 billion in April, a 12.8 percent increase from a year ago.

The majority of April sales tax revenue is based on sales made in March and remitted to the state in April. “State sales tax collections reached a new high for the month of April, with double-digit growth reflecting both inflation and continued expansion in real economic activity and employment,” Texas Comptroller Glenn Hegar said.

Hegar said the strongest growth in April came from receipts from sectors driven by business spending, specifically mentioning the oil and gas and mining sector. Sales tax receipts from construction, manufacturing and wholesale trade sectors continued to show double-digit growth.

“Among sectors driven by consumer spending, the strongest growth in receipts was in arts and recreation services, with receipts from sporting events, music and other live entertainment, and fitness clubs far exceeding previous year levels,” he said. “Receipts from restaurants continued to exhibit double-digit growth as well.”

Taxes from the retail trade sector were only slightly better than a year ago, which Hegar attributed to a spending surge that occurred as COVID restrictions were lifted.

For the last three months, sales tax receipts were up 22.3 percent compared to the same period a year ago.

Here’s how individual sectors fared:

>> Motor vehicle sales and rental taxes — $525 million, up 39 percent from April 2021.

>> Motor fuel taxes — $335 million, up 3 percent from April 2021.

>> Oil Production tax — $666 million, the highest monthly collections on record, up 99 percent from April 2021.

>> Natural gas production tax — $339 million, up 46 percent from April 2021.

>> Hotel occupancy tax — $76 million, the highest monthly collections on record, up 49 percent from April 2021.

>> Alcoholic beverage taxes — $152 million, the highest monthly collections on record, up 27 percent from April 2021.