“Fiscal 2023 tax revenues were ahead of our projections in the Biennial Revenue Estimate released in January.”
Texas Insider Report: AUSTIN, Texas – Texas Comptroller Glenn Hegar today released totals for fiscal 2023 State Revenues, in addition to announcing monthly state revenues for August.
- General Revenue-related revenue for fiscal 2023 totaled $82.84 billion, up 8.3% from fiscal 2022.
- All Funds revenue was $187.79 billion, up 2.4% from fiscal 2022.
- All Funds tax collections were $82.15 billion, up 6.4% from fiscal 2022.
- Sales tax revenue was $46.58 billion, up 8.4% from fiscal 2022.
- Motor vehicle sales and rental tax revenue was $6.82 billion, up 5.8% from fiscal 2022.
- Franchise tax revenue was $6.82 billion, up 20.2% from fiscal 2022.
- Oil production tax revenue was $5.93 billion, down 6.8% from fiscal 2022.
- Natural gas production tax revenue was $3.35 billion, down 25% from fiscal 2022.
“Fiscal 2023 tax revenues were ahead of our projections in the Biennial Revenue Estimate released in January,” Hegar said.
“Franchise and insurance taxes were particularly strong in fiscal 2023. These taxes are based on the companies’ activity in 2022, and year-over-year increases of 20 and 30%, respectively, are results of receipts elevated due to the high price of inflation last year.
"In addition, interest and investment income was up more than 72% in comparison with fiscal 2022, thanks to elevated interest rates and large cash balances in the state treasury.”
“Franchise and insurance taxes were particularly strong in fiscal 2023. These taxes are based on the companies’ activity in 2022, and year-over-year increases of 20 and 30%, respectively, are results of receipts elevated due to the high price of inflation last year.
"In addition, interest and investment income was up more than 72% in comparison with fiscal 2022, thanks to elevated interest rates and large cash balances in the state treasury.”
The Economic Stabilization Fund and State Highway Fund both receive funding from oil and natural gas severance taxes. In November, the Comptroller’s office will deposit $3.06 billion in each of those funds in fiscal 2024, down from the $3.64 billion deposited in each fund in fiscal 2023.
Hegar also said state sales tax revenue totaled $3.98 billion in August, 5.7% more than in August 2022.
The majority of August sales tax revenue is based on sales made in July and remitted to the agency in August.
“August receipts from the oil and gas mining sector finished the fiscal year as they did every month this year by leading gains in collections among all major sectors,” Hegar said.
“Growth in receipts from the other sectors driven primarily by business spending were more muted, as has been the case in recent months. Remittances from the construction and manufacturing sectors were up slightly compared with last August, while receipts from the wholesale trade sector were negative for the fourth time in five months.
“Remittances from the retail trade sector overall were up from a year ago, but results within the sector were mixed. Online shopping receipts were up by double digits compared with last August, but receipts from building materials stores, electronics and appliance stores, and furniture and home goods stores continued to show weakness as the boom seen during the pandemic in these sectors continues to fade.
“Restaurant receipts were slightly above the inflation rate for food away from home in July.”
Total sales tax revenue for the three months ending in August 2023 was up 5% compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 57% of all tax collections.
Texas collected the following revenue from other major taxes in August:
- Motor vehicle sales & rental taxes — $659 million, up 1% from August 2022;
- Motor fuel taxes — $329 million, up 3%from August 2022;
- Oil production tax — $501 million, down 18% from August 2022;
- Natural gas production tax — $137 million, down 74% from August 2022;
- Hotel occupancy tax — $70 million, up 1% from August 2022; and
- Alcoholic beverage taxes — $148 million, up 2% from August 2022.
