HARLINGEN — State sales tax revenues for January hit an all-time record of $4.11 billion, 6.6 percent above the same month last year.
Most of January sales tax revenue is based on sales made in December and remitted to the Texas Comptroller’s Office in January.
“While state sales tax collections reached another all-time high, it is important to note that the rate of growth from the previous year was the lowest in the 22 months since the end of pandemic restrictions,” Comptroller Glenn Hegar said. “This reflects slowing in the rate of inflation and slowing growth in real economic activity as well.”
“Unfortunately, inflation continues to erode the purchasing power of Texas consumers as the consumer price index rate for December was 6.5 percent,” he added.
January’s tax receipts were driven by business spending, which continued to lead growth, Hegar said.
Receipts from manufacturing, construction and wholesale trade sectors continued their robust growth but at lower rates than in recent months, which Hegar attributed to inflationary pressures, particularly on construction materials.
“Overall, retail trade receipts grew only slightly and at less than the rate of inflation for consumer goods,” he said. “Within the retail sector, remittances from the electronic shopping segment led the way as people celebrated the holidays.”
But receipts from big-box retailers and department stores declined, while receipts from dollar stores were up sharply from a year ago — “with consumers choosing lower-cost retail options over other outlets during the peak of the Christmas shopping season,” Hegar said.
Restaurant revenues were in line with inflation costs associated with rising grocery store items, he said.
Here’s how the different sectors broke down:
>> Motor vehicle sales and rental taxes — $566 million, up 18 percent from January 2022;
>> Motor fuel taxes — $311 million, up 5 percent from January 2022;
>> Oil production tax — $486 million, up 14 percent from January 2022;
>> Natural gas production tax — $322 million, down 13 percent from January 2022;
>> Hotel occupancy tax — $55 million, up 11 percent from January 2022;
>> Alcoholic beverage taxes — $156 million, the highest monthly collections on record, up 11 percent from January 2022.
