Texas Comptroller Glenn Hegar announced state sales tax revenue totaled $3.81 billion in October, down 0.3 percent from October 2022.
The majority of October sales tax revenue is based on sales made in September and remitted to the agency in October.
“For the first time in 31 months following the end of pandemic restrictions, monthly state sales tax collections failed to grow on an annual basis,” Hegar said. “October sales tax collections are in line with our recent Certification Revenue Estimate, which predicted slower economic growth in the months ahead. Contributing to the year-overyear decline was erratic refund activity this month, as well as notable declines in receipts from some sectors which could indicate a slowing economy.
“Receipts from the larger business spending-driven sectors, manufacturing and wholesale trade declined significantly from a year ago, and receipts from the construction sector barely surpassed the previous year. This could be due to declines in business input prices, but it could also indicate slowing production. Receipts from the oil and gas mining sector continued to exceed those of the previous year.
Among consumer-dependent retail trade sectors, receipts from home improvement centers and furniture stores dropped sharply from a year ago. Receipts from electronics and appliance stores, big-box general merchandisers, department stores and clothing stores were also down significantly. Receipts from online merchants and gasoline stations were up slightly, but at less than the rate of general price inflation.
Declines in retail sales from a year ago may reflect numerous factors, including reallocation of household budgets away from goods to services and to higher debt-service costs, falling prices for some categories of goods such as electronics and depletion of excess savings that households had accumulated during the pandemic.
Receipts from restaurants grew only modestly and at less than the rate of inflation for food away from home. Spending for live entertainment continued to boom, spurring double-digit growth in receipts from music, arts and sporting events.”
Total sales tax revenue for the three months ending in October 2023 was up 2.7% compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 57% of all tax collections.
Texas collected the following revenue from other major taxes: - motor vehicle sales and rental taxes totaled $606 million, up 3% from October 2022; - motor fuel taxes totaled $316 million, up 1% from October 2022; - oil production tax totaled $586 million, up 8% from October 2022; - natural gas production tax totaled $192 million, down 53% from October 2022; - hotel occupancy tax totaled $67 million, up 2% from October 2022; and - alcoholic beverages taxes totaled $154 million, up 2% from October 2022.
Hegar announced today he will send cities, counties, transit systems and special purpose districts $1.2 billion in local sales tax allocations for November, 1.9% more than in November 2022.
These allocations are based on sales made in September by businesses that report tax monthly and on sales made in July, August and September by quarterly filers.
Cities are expected to receive $751.4 million in allocations, which is a 1.7% increase from Nov. 2022 and is a 4.9% increase in the yearto- date change.
Transit systems are expected to receive $242.1 million in allocations, which is a 1.2% increase from Nov. 2022 and is a 5.1% increase in the year-to-date change.
Counties are expected to receive $70.2 million in allocations, which is a 3.7% increase from Nov. 2022 and is a 9.7% increase in the year-to-date change.
Special purpose districts are expected to receive $108.5 million in allocations, which is a 4.1% increase from Nov. 2022 and is a 11.3% increase in the year-to-date change.
Overall, all recipients are receiving $1.2 billion in allocations, which is a 1.9% increase from Nov. 2022 and a 5.8% increase in the year-to-datechange.
The City of Levelland received a net payment for this period of $420,861.46 which is 24.91% decrease than last year’s comparable payment of $560,525.29. The current year-todate total is roughly $4.59 million, which is a 7.32% increase from last year’s year-to-date total of roughly $4.27 million.
The City of Sundown received a net payment for this period of 35,121.28 which is 30.20% less than last year’s comparable payment of $50,319.68. The current year-to-date total is $475,794.16, which is a .84% decrease from last year’s year-todate total of $479,852.78.
The City of Smyer received a net payment for this period of $5,924.62 and currently has a year-to-date total of $59,626.63.
The City of Ropesville received a net payment for this period of $12,069.46, which is a 21.33% increase from last year’s comparable payment of $9,946.84. The current year-to-date total is $128,615.22, which is a 12.46% increase from last year’s year-todate total of $114,358.04.
The City of Anton received a net payment for this period of $9,649.60, which is a 13.59% increase from last year’s comparable payment of $8,494.78. The current year-to-date total is $98,777.79, which is a 12.07% increase from last year’s year-todate total of $88,136.46.
For Opdyke West, it received a net payment for this period of $391.89, which is a 21.43% decrease from last year’s comparable payment of $498.84. The current year-to-date total is $4,283.52, which is a 7.32% increase from last year’s year-todate total of $4,745.44.
The City of Morton received a net payment for this period of 12,547.27 which is a 12.31% increase from last year’s comparable payment of $11,171.86. The current year-to-date total is $147,977.56, which is a 16.60% increase from last year’s year-todate total of $126,900.74.
The City of Whiteface received a net payment for this period of $3,466.87, which is a 17.40% decrease from last year’s comparable payment of $4,197.29. The current year-to-date total is $33,142.90, which is a 4.30% increase from last year’s year-todate total of $31,776.10.