Texas Comptroller Glenn Hegar recently announced state sales tax revenue totaled $4.1 billion in November, 3.7% more than in November 2022.
The majority of November sales tax revenue is based on sales made in October and remitted to the agency in November.
“State sales tax revenue growth resumed in November, after slightly declining on an annual basis the previous month,” Hegar said. “Remittances from sectors driven by business spending were mixed — receipts from the mining and construction sectors rose significantly from year ago levels, while receipts from the manufacturing sector declined slightly. Receipts from the wholesale trade sector dropped significantly — the seventh decline from prior year levels in the last eight months.
Remittances from the retail trade sector were again down overall, with the largest declines from home improvement centers and furniture and home goods stores. Receipts from big box general merchandisers, as well as mall-based department and specialty stores, were down from year ago levels for a second consecutive month. Receipts from online merchants increased, as internet shopping continues to gain market share from physical stores.
Service sector receipts increased significantly, propelled by spending for concerts, sporting events and fitness clubs. Receipts from restaurants were up just slightly from a year ago, at less than the rate of inflation for food away from home.
Total sales tax revenue for the three months ending in November 2023 was up 2.1% 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 $561 million, up 7% from November 2022; - motor fuel taxes totaled $327 million, down 1% from November 2022; - oil production tax totaled $575 million, up 1% from November 2022; - natural gas production tax totaled $211 million, down 48% from November 2022; - hotel occupancy tax totaled $74 million, up 2% from November 2022; and - alcoholic beverage taxes totaled $152 million, up less than 1% from November 2022.
Hegar announced he will send cities, counties, transit systems and special purpose districts $1.1 billion in local sales tax allocations for December, 2.5% more than in December 2022. These allocations are based on sales made in October by businesses that report tax monthly.
Cities are expected to receive $681.6 million in allocations, which is a 2.4% increase from Dec. 2022 and is a 4.7% increase in the yearto- date change.
Transit systems are expected to receive $229.8 million in allocations, which is a 1.5% increase from Dec. 2022 and is a 4.8% increase in the year-to-date change.
Counties are expected to receive $66.2 million in allocations, which is a 3.7% increase from Dec. 2022 and is a 9.2% increase in the year-to-date change.
Special purpose districts are expected to receive $100.2 million in allocations, which is a 4.2% increase from Dec. 2022 and is a 10.7% increase in the year-to-date change.
Overall, all recipients are receiving $1.1 billion in allocations, which is a 2.5% increase from Dec. 2022 and a 5.5% increase in the year-to-datechange.
The City of Levelland received a net payment for this period of $337,312.17 which is a 14.42% decrease than last year’s comparable payment of $394,175.49. The current year-todate total is roughly $4.9 million, which is a 5.48% increase from last year’s year-to-date total of roughly $4.67 million.
The City of Sundown received a net payment for this period of $28,140.70 which is 25.36% less than last year’s comparable payment of $37,705.56. The current year-to-date total is $503,934.86, which is a 2.63% decrease from last year’s year-todate total of $517,558.34.
The City of Smyer received a net payment for this period of $5,571.63 which is a 24.14% increase from last year’s comparable payment of $4,487.90. The current year-to-date total s $65,198.26 which is a 1,352.75% increase of $4,487.90.
The City of Ropesville received a net payment for this period of $12,042.22 which is a 25.28% increase from last year’s comparable payment of $9,611.99. The current year-to-date total is $140,657.44, which is a 13.46% increase from last year’s year-todate total of $123,970.03.
The City of Anton received a net payment for this period of $7,116.62, which is a 4.34% increase from last year’s comparable payment of $6,820.25. The current year-to-date total is $105,894.41 which is a 11.51% increase from last year’s year-todate total of $94,956.71.
For Opdyke West, it received a net payment for this period of $508.95, which is a 58.31% decrease from last year’s comparable payment of $321.47. The current year-to-date total is $4,792.47.52, which is a 5.41% decrease from last year’s year-todate total of $5,066.91.
The City of Morton received a net payment for this period of $11,687.47 which is a 3.64% decrease from last year’s comparable payment of $12,129.92. The current year-to-date total is $159,665.03, which is a 14.84% increase from last year’s year-todate total of $139,030.66.
The City of Whiteface received a net payment for this period of $2,952.52, which is a 3.80% decrease from last year’s comparable payment of $3,069.26. The current year-to-date total is $36,095.42, which is a 3.58% increase from last year’s year-todate total of $34,845.36.