Texas sales tax revenue totals $4.1 billion in December 2023
Texas has recorded a positive trend in its sales tax revenue for December 2023, signaling a moderate increase compared to the same month in 2022, according to a report from the state’s Comptroller’s office. The overall sales tax revenue for December 2023 reached $4.06 billion, reflecting a 3.2% growth over December 2022. Comptroller Glenn Hegar highlighted that the majority of the revenue was generated from sales made in November 2023.
The report indicates that the growth in overall sales tax collections was driven by the manufacturing and service sectors. Both the construction and manufacturing sectors, primarily influenced by business spending, showed modest gains compared to the previous year. However, the mining sector, which experienced significant increases since the pandemic, saw a slight decline in December 2023. Wholesale trade remittances also decreased.
Over the last three months ending in December 2023, total sales tax revenue exhibited a 2.2% increase compared to the same period in 2022. Sales tax remains the largest source of state funding for the Texas budget, constituting 57% of all tax collections.
Comptroller Hegar provided insights into specific sectors contributing to the revenue. Remittances from the retail trade sector experienced a slight increase, driven by robust growth in electronic shopping. On the other hand, receipts from home improvement centers and furniture and home goods stores continued to decline in December, reflecting persistent decreased consumer spending on these items post-pandemic peak.
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In addition to sales tax, Texas collected revenue from other major taxes, presenting a varied landscape:
1. Motor vehicle sales and rental taxes amounted to $522 million, showing an 8% decrease from December 2022.
2. Motor fuel taxes reached $317 million, marking a marginal increase of less than 1% from December 2022.
3. Oil production tax generated $501 million, reflecting a 3% decrease from December 2022.
4. Natural gas production tax contributed $171 million, indicating a significant 54% decrease from December 2022.
5. Hotel occupancy tax amounted to $41 million, down by 29% from December 2022.
6. Alcoholic beverage taxes totaled $136 million, experiencing a marginal decrease of less than 1% from December 2022.
The diverse performance across these tax categories highlights the dynamic economic landscape and the impact of various factors on revenue generation. As Texas continues to navigate economic shifts and recovery post-pandemic, monitoring these indicators provides valuable insights into the state’s fiscal health and economic trajectory.
