State Sales Tax Revenue In September

Texas Comptroller Glenn Hegar

(AUSTIN) — Texas Comptroller Glenn Hegar said state sales tax revenue totaled $3.69 billion in September, 17.2 percent more than in September 2021. The majority of September sales tax revenue is based on sales made in August and remitted to the agency in September.

“State sales tax collections continued to climb rapidly in September, with solid growth in receipts from all major economic sectors,” Hegar said.

“Surging receipts from nonretail sectors indicate that the robust spending by businesses in recent months continued unabated. Spurred partly by inflation in building materials and other business input prices, the mining, construction, manufacturing, and wholesale trade sectors have each exhibited double-digit growth in sales tax remittances for ten or more consecutive months.

“Receipts from retail trade and restaurants grew moderately and at less than the rate of consumer price inflation, reflecting potentially higher shares of household budgets allocated by rent, groceries and transportation expenses, items not subject to sales tax, in response to inflation. Receipts from online shopping, building material, home improvement stores, and automotive dealers and parts stores all had double-digit increases compared with last September. But receipts from clothing, electronics and appliance, and furniture and home furnishings stores were little changed, while receipts from general merchandisers and sporting goods and hobby stores were down from a year ago.”

Total sales tax revenue for the three months ending in September 2022 was up 14.9 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 56 percent of all tax collections.

Texas collected the following revenue from other significant taxes:

• motor vehicle sales and rental taxes — $616 million, up 13 percent from September 2021;
• motor fuel taxes — $328 million, up 2 percent from September 2021;
• oil production tax — $552 million, up 41 percent from September 2021;
• natural gas production tax — $480 million, up 91 percent from September 2021;
• hotel occupancy tax — $57 million, up 11 percent from September 2021; and
• alcoholic beverage taxes — $138 million, up 13 percent from September 2021.

For details on all monthly collections, visit the Comptroller’s Monthly State Revenue Watch. For an extensive history of tax policy developments and fees since 1972, visit our updated Sources of Revenue publication.