“State sales tax revenue growth resumed in November, after slightly declining on an annual basis the previous month.”
Texas Insider Report: AUSTIN, Texas – Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $4.1 billion in November, 3.7 percent more than in November 2022. Sales tax is the largest source of state funding for the state budget, accounting for 57 percent of all tax collections.
“State sales tax revenue growth resumed in November, after slightly declining on an annual basis the previous month,” Hegar said.
“Remittances from sectors driven by business spending were mixed — receipts from the mining and construction sectors rose significantly from year ago levels, while receipts from the manufacturing sector declined slightly. Receipts from the wholesale trade sector dropped significantly — the seventh decline from prior year levels in the last eight months.“Remittances from the retail trade sector were again down overall, with the largest declines from home improvement centers and furniture and home goods stores.
"Receipts from big box general merchandisers, as well as mall-based department and specialty stores, were down from year ago levels for a second consecutive month. But receipts from online merchants increased, as internet shopping continues to gain market share from physical stores," said the Texas Comptroller.
“Service sector receipts increased significantly, propelled by spending for concerts, sporting events and fitness clubs. Receipts from restaurants were up just slightly from a year ago, at less than the rate of inflation for food away from home.”
Total sales tax revenue for the three months ending in November 2023 was up 2.1 percent compared with the same period a year ago.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $561 million, up 7 percent from November 2022;
- motor fuel taxes — $327 million, down 1 percent from November 2022;
- oil production tax — $575 million, up 1 percent from November 2022;
- natural gas production tax — $211 million, down 48 percent from November 2022;
- hotel occupancy tax — $74 million, up 2 percent from November 2022; and
- alcoholic beverage taxes — $152 million, up less than 1 percent from November 2022.
