“Growth in tax receipts was evident across all major sectors, with the exception of retail trade, as consumers reallocate budgets away from goods in favor of services..."
Texas Insider Report: AUSTIN, Texas – Texas Comptroller Glenn Hegar said earlier today that State Sales Tax Revenues totaled $3.57 billion in March, 5.9% more than in March 2022.
“In line with our biennial revenue forecast, state sales tax collections resumed the recent trend of significant but slowing growth, with the gain compared with the previous year being the lowest since the end of pandemic restrictions two years ago,” Hegar said.
“Growth in tax receipts was evident across all major sectors, with the exception of retail trade, as consumers reallocate budgets away from goods in favor of services as inflation continues to impact shoppers.“Receipts from the oil and gas mining sector led the way for all sectors, showing nearly a 50% gain for the third straight month. Remittances from the construction sector were up by double digits compared with last March, and receipts from the wholesale trade sector showed gains compared with a year ago – indicating business spending is still very strong in the state.
“Remittances from the retail trade sector were negative compared with the same month the previous year for the first time since April 2022. Within the sector, general merchandise receipts were down the most compared with last year.
"Remittances from the sale of building materials declined for the third consecutive month, as the pace of home improvements and remodeling projects that saw enormous increases at the height of the pandemic decidedly slowed. Receipts from clothing and accessory stores were down moderately.
“Restaurant receipts were up considerably for the second month in a row compared with a year ago, outpacing the inflation rate for food away from home by nearly 50%.”
Total sales tax revenue for the three months ending in March 2023 was up 8.7% compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 56 percent of all tax collections.
Texas collected the following revenue from other major taxes:
- Motor Vehicle Sales & Rental Taxes — $432 million, up 12% from March 2022
- Motor fuel Taxes — $287 million, up 4% from March 2022
- Oil Production Tax — $427 million, down 10% from March 2022
- Natural Gas Production Tax — $267 million, down 23% from March 2022
- Hotel Occupancy Tax — $61 million, up 21% from March 2022, and
- Alcoholic Beverage Taxes — $138 million, up 11% from March 2022
