(from Texas Comptroller )
|November 1, 2021 |
State Sales Tax Revenue Totaled $3.4 Billion in October
(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $3.41 billion in October, 25.2 percent more than in October 2020. The majority of October sales tax revenue is based on sales made in September and remitted to the agency in October.
Year-over-year increases for most tax revenues continue to be affected by base effects: Year-ago revenue collections to which this year’s collections are compared were suppressed by the pandemic. Compared to October 2019, sales tax collections were up 20.9 percent.
“October state sales tax collections again strongly surpassed pre-pandemic levels, reaching a new monthly high,” Hegar said. “Tax receipts from most major economic sectors were up by double-digit percentages from a year ago, indicating continued brisk spending by both businesses and consumers.
“Collections from the oil- and gas-mining sector more than doubled from a year ago, while exploration and drilling activity remains at a pace little more than half that of the pre-pandemic months. Strong construction, manufacturing and wholesale trade sector receipts persist despite ongoing supply chain issues.
“Receipts from the retail trade sector showed some signs of a shift in consumer spending patterns back toward pre-pandemic norms. As Texans increasingly venture away from home for entertainment, shopping and resumption of office work, remittances from sporting goods stores declined from last year’s record levels, while those from ticket sales for live entertainment venues rose.
“Receipts from general merchandisers continued well above pre-pandemic levels, with receipts from mall-based department stores surging from year-ago levels, while receipts from big box and discount retailers remained at last year’s elevated levels without further growth. Among more specialized retailers, the fastest growth in receipts was again with electronics and appliance stores, as has been the case in recent months, while receipts from clothing and accessory stores continued to grow robustly as well. Receipts from online general merchandisers continued to grow moderately from last year’s elevated levels.”
Total sales tax revenue for the three months ending in October 2021 was up 21.9 percent compared to the same period a year ago and 28.6 percent compared to 2019. Sales tax is the largest source of state funding for the state budget, accounting for 59 percent of all tax collections.
Texas collected the following revenue from other major taxes, most of which were up sharply from a year ago due to base effects: