DALLAS – Weakness in the energy market continues to sap sales tax revenue in Texas, but the construction and retail sectors are still going strong, according to state Comptroller Glenn Hegar.
Revenue for July fell 1.5% to $2.37 billion compared to the same month last year, Hegar said.
Oil and natural gas production taxes of $201.8 million were down 33.9% from July 2015.
"State sales tax collections continue to be down, largely due to depressed spending in the oil and natural gas-related sectors," Hegar said. "By contrast, collections from the construction and retail trade sectors rose compared to the previous year."
Sales tax revenue for the three months ending in July 2016 is down 3.3% compared to the same period a year ago, Hegar said.
Sales tax revenue accounts 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, which has no income tax.
On the positive side, motor vehicle sales and rental taxes were up 1% to $441.9 million, and motor fuel taxes rose 0.2% to $297.4 million.
Oil and natural gas production taxes for June came to $205.1 million, down 31.8% from June 2015.
While neighboring Oklahoma and New Mexico struggle with recession, Texas saw its economy grow in June, according to the Federal Reserve Bank of Dallas.
Payroll employment grew, although unemployment ticked up, the bank reported.
The Dallas Fed's Texas Manufacturing Outlook Survey found that production held steady in July.
Construction contract values increased in June, but the five-month moving average dipped. Exports fell in May for the second month. The estimated value of the Texas Leading Index edged down in June.
