Texas Insider Report: AUSTIN, Texas – Texas Comptroller Don Huffines said many cities and counties can reduce property taxes due to increased sales tax revenue as local governments will receive $1.3 billion in allocations of net local sales tax collected in September, 11.6% more than a year ago.
"The Texas economy is strong, and the rising sales tax revenue received by many local governments is an opportunity for local elected officials to reduce property taxes,” Huffines said. “Lower property taxes can help make housing more affordable and reduce the everyday financial strain many Texans face.”
In September, the state collected $4.4 billion in net state sales tax revenue and $1.3 billion in net local sales tax revenue, which will be distributed to Texas cities, counties, transit systems, and special purpose districts. Combined state and local net sales tax revenue collected in September totaled $5.7 billion, 12.4% more than in September 2025. These collections come mostly from businesses that report tax monthly and reflect their August sales. Businesses that report quarterly or annually remit on a different schedule.
Net revenue reflects sales tax collections after refunds, overpayment credits and prepayment adjustments. Local amounts are also net of the state’s 2% administrative fee, which is deposited to the General Revenue Fund.
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For details on sales tax allocations to individual cities, counties, transit systems, and special purpose districts, visit the Comptroller’s Monthly Sales Tax Allocation Comparison Summary Reports.
