State sales tax for June came in at $3.68 billion, a 16.4-percent increase over the previous year.
“State sales tax collections surged in June, outpacing inflation, with strong growth in receipts from all major economic sectors,” Texas Comptroller Glenn Hegar said.
“The strongest growth was in sectors driven primarily by business spending, with receipts from the mining sector nearly doubling collections from last year, and with receipts from the manufacturing, wholesale trade and construction sectors also up sharply,” he added.
Most of the June sales tax revenue is based on sales made in May and remitted to the agency in June.
As a result of a sustained period of historically high sales tax revenues, Hegar will provide an update to the Certification Revenue Estimate published in November 2021. That update will result in a significant increase in estimated revenue available for the 2022-23 biennium.
Receipts from restaurants and the services sector were strong in June as Texans continued to spend more on live events with entertainment options, many of which were not available during the pandemic shutdowns.
“While receipts overall from retail trade were strong, receipts from furniture and home furnishings stores, as well as sporting goods and hobby stores, declined from year-ago levels for the third straight month, another indication consumers are switching spending from goods to services,” Hegar said.
For the last quarter, state sales tax receipts were up 12.5 percent compared to the same quarter a year ago.
Here’s how the major sectors break down:
Motor vehicle sales and rental taxes — $584 million, down 1 percent from June 2021.
Motor fuel taxes — $323 million, up 3 percent from June 2021.
Oil production tax — $679 million, the highest monthly collection on record, up 87 percent from June 2021.
Natural gas production tax — $439 million, the highest monthly collection on record, up 176 percent from June 2021.
Hotel occupancy tax — $67 million, up 24 percent from June 2021.
Alcoholic beverage taxes — $150 million, up 9 percent from June 2021.
