Texas comptroller Glenn Hegar recently said oil production tax revenue in Texas totaled $586 million in October – up 8 percent from October 2022 – but overall state sales tax receipts were down 0.3 percent from a year ago. State sales tax revenue in October of $3.81 billion is based on sales made in September and remitted to the agency in October. Hegar said, “For the first time in 31 months, following the end of pandemic restrictions, monthly state sales tax collections failed to grow on an annual basis.” The agency’s Certification Revenue Estimate forecast slower economic growth in months ahead.
Hegar added, “Receipts from the larger business spending-driven sectors, manufacturing and wholesale trade declined significantly from a year ago, and receipts from the construction sector barely surpassed the previous year.” Also down were receipts from home improvement centers, furniture stores, electronics and appliance stores, “big box” general merchandisers, department stores and clothing stores. Total sales tax revenue for the three months ending in October was up 2.7 percent over the same period in 2022.
Natural gas production tax in Texas totaled $192 million in October – down 53 percent from October 2022. Sales tax, the largest source of funding for the state budget, accounts for 57 percent of all tax collections.