(WFCN) Austin –
July state sales tax collection was $3.99 billion, according to Texas Comptroller Glenn Hegar today. This is a 0.1 percent increase compared to July 2023. The bulk of the sales tax collected in July comes from sales that took place in June and are sent back to the government in July.
The second consecutive month saw a small improvement in monthly state sales tax receipts compared to the same month last year, according to Hegar. This maintains a pattern of slower growth than inflation this year, suggesting that firms and consumers are cutting back on spending when adjusted for inflation.
“The sectors that are mainly affected by business expenditure had uneven sales tax remittances. Construction and manufacturing had higher collections than last year, while wholesale trade and mining had far lower receipts.
Source – The Economics Times
Revenue from industries that rely on consumer spending remained relatively unchanged, with a little decrease in retail trade remittances and a small increase in service sector receipts as compared to their totals from July 2023.
“In June, restaurant receipts increased, but not at the same rate as inflation for food consumed outside of the home.”
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There was a 1.7% increase in total sales tax income over the previous year’s same three-month period ending in July 2024. With 57% of all tax revenues going toward the state coffers, sales tax is by far the most important revenue generator.
Other important taxes brought in the following sums for Texas:
The following taxes were collected: $599 million from motor vehicle sales and rentals, which is a 4% decrease from July 2023; $319 million from motor fuel taxes, a 3% decrease from July 2023; $557 million from oil production, a 27% increase from July 2023; $164 million from natural gas production, a 152% increase from July 2023; $75 million from hotel occupancy, a 5% increase from July 2023; and $150 million from alcoholic beverages, a 1% increase from July 2023.
Check out the Monthly State Revenue Watch maintained by the Comptroller for comprehensive information on all monthly collections.
Learn more about the evolution of tax policies and associated levies from 1972 to the present by perusing our revised Sources of Revenue brochure.