DALLAS – Texas sales tax revenue dipped 0.8% in June to $2.2 billion compared to the same month last year, state Comptroller Glenn Hegar reported.
The sales tax reports have shown a drop in four out of the last six months. The June drop followed a much sharper 7% decline in May.
Total sales tax revenue for the three months ending in June 2016 is down 1.9% compared to the same period a year ago.
"Sales tax revenue growth continues to be hobbled by reduced spending in oil- and gas-related sectors," Hegar said. "Despite the recent increase in oil prices, spending is below even the reduced levels seen a year ago."
Sales tax revenue is the largest source of state funding for the state budget, accounting for 56% of all tax collections. Motor vehicle sales and rental taxes, motor fuel taxes and oil and natural gas production taxes also are large revenue sources for the state.
Oil and natural gas production taxes for June came to $205.1 million, down 31.8% from June 2015.
While motor vehicle sales and rental taxes were down 0.1% compared to June 2015, motor fuel taxes rose 7.6%, indicating increased driving in the state.
