State sales tax receipts jump 17.2 percent over last year

State sales tax revenue in September totaled $3.69 billion, 17.2 percent above collections compared to a year ago.

Most September sales tax revenue is based on sales made in August and remitted to the state in September.

“Surging receipts from non-retail sectors indicate that the exceptionally strong spending by businesses in recent months continued unabated,” said Texas State Comptroller Glenn Hegar. “Spurred in part by inflation in building materials and other business input prices, the mining, construction, manufacturing and wholesale trade sectors have each exhibited double-digit growth in sales tax remittances for 10 or more consecutive months.”

Hegar said receipts from retail and restaurants grew, but only moderately, and less than the rate of consumer price inflation. This, he said, potentially reflects a higher share of household budgets going to rent, groceries and transportation expenses — items not subject to sales tax — in response to inflation.

Receipts from online shopping, building material and home improvement stores, and automotive dealers and parts stores, all had double-digit increases compared with last September.

“But receipts from clothing, electronics and appliance, and furniture and home furnishings stores were little changed, while receipts from general merchandisers and sporting goods and hobby stores were down from a year ago,” Hegar said.

Here’s how different sectors shaped up:

Motor vehicle sales and rental taxes — $616 million, up 13 percent from September 2021.

Motor fuel taxes — $328 million, up 2 percent from September 2021.

Oil production tax — $552 million, up 41 percent from September 2021.

Natural gas production tax — $480 million, up 91 percent from September 2021.

Hotel occupancy tax — $57 million, up 11 percent from September 2021.

Alcoholic beverage taxes — $138 million, up 13 percent from September 2021.