Special to the Booster
AUSTIN — On Monday, Texas Comptroller Glenn Hegar reported that sales tax revenue totaled $3.99 billion in July, 0.1 percent more than in July 2023. The majority of July sales tax revenue is based on sales made in June and remitted to the agency in July.
“Monthly state sales tax collections were slightly positive compared with the same month a year ago for the second month in a row,” Hegar said. “This continues a trend this year of growth at less than the rate of inflation, indicating slowing spending by both businesses and consumers on an inflation-adjusted basis.
“Sales tax remittances from the sectors driven primarily by business spending were mixed, with receipts from the manufacturing and construction sectors coming in greater than their year-ago totals and receipts from the mining and wholesale trade sectors coming in significantly lower than a year ago.
“Receipts from consumer spending-driven sectors were generally flat, with remittances from the retail trade sector being slightly down and receipts from the service sector being slightly up compared to their July 2023 totals.
“Receipts from restaurants were up, but at less than the rate for inflation for food away from home in June.”
Total sales tax revenue for the three months ending in July 2024 was up 1.7 percent compared with 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.
Texas collected the following revenue from other major taxes:
• motor vehicle sales and rental taxes — $599 million, down 4 percent from July 2023;
• motor fuel taxes — $319 million, down 3 percent from July 2023;
• oil production tax — $557 million, up 27 percent from July 2023;
• natural gas production tax — $164 million, up 152 percent from July 2023;
• hotel occupancy tax — $75 million, up 5 percent from July 2023; and
• alcoholic beverage taxes — $150 million, up 1 percent from July 2023.
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