Texas Distributes Nearly $2.8 Billion For February Sales Tax Revenue
*NOTE: This article has be updated to change the headline from “Texas Reimburses Nearly $2.8 Billion For February Sales Tax Revenue” to “Texas Distributes Nearly $2.8 Billion For February Sales Tax Revenue.” The headline change was made to prevent any potential confusion. See comments for further info.*
AUSTIN — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $2.796 billion in February, 7 percent more than in February 2018.
“Growth in sales tax revenue was led by remittances from the construction, manufacturing and services sectors,” Hegar said. “Receipts from information services and restaurants also grew significantly. Receipts from oil- and gas-mining firms remained about the same as a year ago.”
Total sales tax revenue for the three months ending in February 2019 was up 5.9 percent compared to the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 57 percent of all tax collections.
In February 2019, Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $420.3 million, down 0.4 percent from February 2018;
- motor fuel taxes — $299.3 million, up 0.9 percent from February 2018;
- natural gas production taxes — $163.8 million, up 22.2 percent from February 2018; and
- oil production taxes — $268.5 million, down 12.6 percent from February 2018. After 24 consecutive months of year-over-year increases, this is the second straight month of year-over-year declining oil production tax revenue.
In the title, is “reimburses” the appropriate word? Shouldn’t it be – distributes, disburses or collects? The comptroller collects sales tax revenues and distributes/disburses the local portions to local jurisdictions (cities, counties, etc,) There isn’t really a reimbursement happening – no one is repaying anyone.
Hi Dave,
Sales Taxes are collected from every city in the State of Texas by the Texas Comptroller of Public Accounts. However, 44 percent of the sales taxes collected from each city is returned in order to be added to the city’s general fund. The return, or “reimbursement”, of that 44 percent of sales tax revenue allows the city to reimburse its citizens with city services.
Essentially, the state or comptroller is reimbursing the citizens of its communities for the sales tax they pay on a day to day basis by returning a portion of those funds to the city to fund city services. That was the thought process behind the use of “reimburses” in the headline.
However, we have rewritten the headline and added a note to ensure there is no confusion.
Sincerely,
Staff