At $3.16 billion in June, Texas sales tax collections were 18% higher than the same month a year ago and 10.4% above those in June 2019, State Comptroller Glenn Hegar said.
“Monthly state sales tax collections remained exceptionally strong, with receipts from all major sectors other than those related to oil and gas surpassing pre-pandemic levels,” Hegar said.
Year-ago revenue collections to which this year’s collections are compared were severely suppressed by the pandemic.
Based on record sales tax collections in 2021, the Texas economy has come roaring back from last year’s recession.
“Elevated spending at clothing stores, electronics and appliance stores, sporting goods stores, building materials and home furnishing stores, some general merchandisers and online retailers continued, though growth in online sales and at big box merchandisers slowed as consumers returned to other physical retail alternatives,” Hegar said.
Alcoholic beverage tax collections of $138 million set a record for any month, soaring 112% from June 2020, and up 12% from June 2019.
“Receipts from restaurants again substantially surpassed pre-pandemic levels, with brisk business continuing at take-out-oriented establishments and modest recovery at some dine-in outlets,” Hegar said. “However, some dine-in restaurant chains continue to operate at lower levels due to permanent closures at some locations.”
Hotel occupancy tax rose 137% to $54 million but continued to show the effects of the pandemic as they were down 7% from June 2019.
The return of shoppers and office workers was reflected in taxes on utilities, Hegar said.
“Collections from electric utilities were up strongly, reflecting air-conditioning usage at shopping centers and office buildings that were subject to closure a year ago,” he said.
Taxes on motor vehicle sales and rentals rose 50% to a record $591 million, up 39% compared to June 2019.
Taxes on motor fuel also rose, up 26% to $315 million compared to the same month last year but down 4% from June 2019.
Oil production tax collections rocketed 339% to $363 million but down slightly from the same month in 2019.
Natural gas production tax also soared 689% to $159 million, three months after the freeze that shut down gas pipelines. Natural gas production taxes were up 28% compared to the same month in 2019.
For the second quarter of the year, total sales tax revenue was up 26.4% compared to the same period a year ago and 14.1% compared to 2019.
Sales tax is the largest source of state funding for the state budget, accounting for 59% of all tax collections.
The reporting deadline for fiscal year 2021 franchise tax collections from businesses was deferred to June from the usual May 15 due date. Collections came to $4.24 billion year-to-date through June. Last year, the due date was deferred to July. Compared to collections through July 2020, year-to-date franchise tax collections were up 1.7%, Hegar said.
