DALLAS – Texas closed out 2017 with the highest percentage increase in monthly sales tax revenue of the calendar year, marking continued growth in the state’s economy.
State sales tax revenue totaled reported for December soared 12.3% over the same month in 2016 to $2.75 billion, Comptroller Glenn Hegar reported.
The December increase came a month after the state set an all-time record for monthly sales tax revenue at $2.78 billion, a better-than 11% increase over the same month the previous year.
“Double-digit growth in sales tax revenue was fueled by collections from oil- and gas-related sectors as well-drilling and completion continued to rebound,” Hegar said. “Growth in tax receipts was notable across all major economic sectors, including retail trade and restaurants.”
Total sales tax revenue for the three months ending in December 2017 was up 10.2% compared to the same period a year ago.
With no state income tax, sales tax revenue is the largest source of state funding for the state budget, accounting for 58% of all tax collections.
Revenue from other major taxes on motor vehicle sales and rentals, motor fuels and oil and natural gas production also rose in December 2017, Hegar said.
Motor vehicle sales and rental taxes rose 16.1% from December 2016 as vehicle purchases to replace cars damaged by Hurricane Harvey continued to boost those tax collections.
Motor fuel taxes rose 4.9% year-over-year to $303.7 million.
Oil and natural gas production taxes soared 73.4% to $396.4 million. Further increases are likely after oil climbed to more than $60 per barrel at the end of the year.