“Growth in receipts from sectors principally driven by business spending continued to outpace that from consumer-oriented retail trade."
Texas Insider Report: AUSTIN, Texas – Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $3.92 billion in June, 6.8 percent more than in June 2022. The majority of June sales tax revenue is based on sales made in May and remitted to the agency in June.
“The overall rate of sales tax revenue growth was in line with the rate of growth over the last three months,” Hegar said. “Growth in receipts from sectors principally driven by business spending continued to outpace that from consumer-oriented retail trade.
“Receipts from the oil and gas mining sector once again showed the largest year-over-year gain among all major sectors, increasing approximately one-third over remittances from June 2022. Nonetheless, this increase represents a slowing of the rate of increase from that sector in recent months.
"Receipts from the manufacturing sector were up solidly from a year ago, but receipts from the construction industry came in only slightly higher than June 2022, and receipts from the wholesale trade sector were down slightly from a year ago, as building materials prices have come down from year-ago levels.
“Receipts from the services sector were up strongly, driven by higher consumer spending at concerts and other live performances, sporting events and theme parks. Restaurant receipts also increased, but at a rate about 1% less than the May inflation rate for food away from home.
“Remittances from the retail trade sector just barely surpassed year-ago levels after dipping below the prior year last month, with large gains from online general merchandisers countered by declines from major store-based general merchandisers and department stores.
“Remittances from furniture and home furnishings stores were down compared with year-ago levels for the fourth consecutive month. Receipts from the home improvement, clothing and accessory stores, electronics and appliance stores, and sporting goods and hobby stores sectors were also negative compared with June 2022.”
Total sales tax revenue for the three months ending in June 2023 was up 5.9% compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 56% of all tax collections.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $597 million, up 2% from June 2022;
- motor fuel taxes — $324 million, up less than 1% from June 2022;
- oil production tax — $456 million, down 33% from June 2022;
- natural gas production tax — $184 million, down 58% from June 2022;
- hotel occupancy tax — $71 million, up 6% from June 2022; and
- alcoholic beverage taxes — $156 million, up 4% from June 2022.
