Growth In State Sales Tax Revenue Continue

“While the fastest growth in tax collections was fueled by business spending, especially in oil- and gas-related sectors, robust consumer spending spurred significant increases from restaurants and retail trade as well…”

(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $2.7 billion in September, 14.8 percent more than in September 2017.

“Vigorous growth in state sales tax revenue continued in September across all major industry sectors,” Hegar said. “While the fastest growth in tax collections was fueled by business spending, especially in oil- and gas-related sectors, robust consumer spending spurred significant increases from restaurants and retail trade as well.”

Total sales tax revenue for the three months ending in September 2018 was up 12.4 percent compared to the same period a year ago. The sales tax is the largest source of state funding for the state budget, accounting for 57 percent of all tax collections.

Revenue from other major taxes on motor vehicle sales and rentals, motor fuel and oil and natural gas production also rose in September 2018:

• motor vehicle sales and rental taxes — $401.4 million, up 4.1 percent from September 2017;
• motor fuel taxes — $325.1 million, up 10.7 percent from September 2017; and
• oil and natural gas production taxes — $487.1 million, up 66.1 percent from September 2017.