State sales tax revenues up 8.6 percent in May

Texas collected $3.69 billion in state sales tax in May, 8.6 percent more than in May 2021.

The majority of May sales tax revenue is based on sales made in April and remitted to the Texas Comptroller’s Office in May.

“Strong, double-digit growth was seen once again in sectors driven primarily by business spending, with receipts from the oil and gas mining sector continuing to exhibit particularly robust growth compared to a year ago,” Comptroller Glenn Hegar said. “Receipts from the construction and wholesale trade sectors also continue to show strong growth.”

Total sales tax revenue for the three months ending in May 2022 was up 15.7 percent compared to the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 59 percent of all tax collections.

Here’s how individual sectors fared:

Motor vehicle sales and rental taxes — $603 million, up 9 percent from May 2021.

Motor fuel taxes — $319 million, up 1 percent from May 2021.

Oil production tax — $595 million, up 64 percent from May 2021.

Natural gas production tax — $413 million, the highest monthly collections on record, up 216 percent from May 2021.

Hotel occupancy tax — $69 million, up 44 percent from May 2021.

Alcoholic beverage taxes — $154 million, the highest monthly collections on record, up 22 percent from May 2021.