HEGAR: Texas Economy Grew 10.5% in December When Measured by Yearly Sales Tax Growth


“The mining, construction, wholesale trade, and rental and leasing sectors had double-digit gains compared with a year ago, and receipts from the manufacturing sector remain robust as well."

Texas Insider Report: AUSTIN, Texas Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $3.93 billion in December, 10.5 percent more than in December 2021. The majority of December sales tax revenue is based on sales made in November and remitted to the agency in December.
 

“Business spending continued to be the principal driver of growth in sales tax revenue, with rapid growth in receipts from non-retail sectors,” Hegar said.

“The mining, construction, wholesale trade, and rental and leasing sectors had double-digit gains compared with a year ago, and receipts from the manufacturing sector remain robust as well. Growth in receipts from the services sector also reached double digits, while those from restaurants grew at about the rate of inflation for food away from home.

“Growth in overall receipts from the retail trade sector was more muted, at about the rate of inflation in consumer goods prices.

The fastest growth among retail segments was in receipts from food and beverage stores, followed by online general merchandisers as late November holiday sales began. But receipts from store-based general merchandisers and furniture and home furnishings stores were little changed from a year ago, while receipts from electronics and appliance stores, and sporting goods and hobby stores, declined from last year.”

Total sales tax revenue for the three months ending in December 2022 was up 11.2 percent compared with the same period a year ago, while the rate of consumer price inflation was up 7.7 percent over the same period. 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 and rental taxes — $566 million, up 7 percent from December 2021;
  • motor fuel taxes — $317 million, up 2 percent from December 2021;
  • oil production tax — $516 million, up 15 percent from December 2021;
  • natural gas production tax — $371 million, down 3 percent from December 2021;
  • hotel occupancy tax — $58 million, up 44 percent from December 2021; and
  • alcoholic beverage taxes — $137 million, up 10 percent from December 2021.
For details on all monthly collections, visit the Comptroller’s Monthly State Revenue Watch. For an extensive history of tax policy developments and fees since 1972, visit our updated Sources of Revenue publication.



















 
Glenn Hegar,Texas Comptroller by is licensed under
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