[ad_1]
AUSTIN – Texas Comptroller Glenn Hegar said today that the state’s sales tax revenue was $ 3.15 billion in September, up 22.3 percent from September 2020. Most of September sales tax revenue was based on sales made in August and transferred to the agency in September.
For most tax revenues, the year-on-year growth continues to be affected by base effects: previous year’s revenues, with which this year’s revenues are compared, were suppressed by the pandemic. Compared to September 2019, sales tax levies increased by 14.8 percent.
“State sales tax levies in September rebounded sharply from last year’s pandemic levels while at the same time greatly outperformed pre-pandemic levels,” Hegar said. “Tax revenues from all major sectors of the economy have increased by double-digit percentages year over year, indicating heavy spending by both businesses and consumers.
“Despite continued shortages of building materials, chemicals, semiconductors and other critical inputs due to weather and pandemic disruptions in the supply chain, revenues from the construction, manufacturing and wholesale sectors rose sharply. Oil and gas mining collections nearly doubled year over year as drilling activity continued to grow but still remained well below pre-pandemic levels.
“Within the retail sector, wholesalers’ revenues continued to grow rapidly, increasing sharply during the shutdown last year, while revenues from department stores in malls rose moderately. Among the more specialized retailers, clothing stores and electrical and household appliances saw the strongest sales growth, as in previous months. Earnings from online retailers of general merchandise continued to grow moderately compared to the high level of last year. Since some of the consumption of alcoholic beverages has shifted back to on-site consumption in bars and restaurants since the pandemic restrictions were lifted, revenue from grocery and beverage stores is no longer rising, despite being above pre-pandemic levels.
Total sales tax revenue for the three months to September 2021 increased by 17.8 percent compared to the same period in the previous year and by 14.9 percent compared to 2019. At 59 percent, sales tax is the state’s largest source of funding for the state budget for all tax collections.
Texas had the following revenues from other major taxes, most of which were up sharply year over year due to base effects:
- Vehicle sales and rental taxes – $ 547 million, up 21 percent from September 2020 and up 26 percent from September 2019;
- Fuel taxes – $ 321 million, 9 percent more than September 2020 and 1 percent less than September 2019;
- Oil extraction tax – $ 392 million, up 72 percent from September 2020 and up 17 percent from September 2019;
- Natural gas extraction tax – $ 252 million, the highest monthly amount since October 2008, 255 percent more than September 2020 and 155 percent more than September 2019;
- Hotel occupancy tax – $ 51 million, 50 percent more than September 2020 and 5 percent less than September 2019; and
- Taxes on alcoholic beverages – $ 122 million, up 56 percent from September 2020 and up 4 percent from September 2019.
[ad_2]
