DALLAS – Texas sales tax revenue fell 5.4% to $2.28 billion in October amid depressed oil prices, state Comptroller Glenn Hegar reported.
Sales tax revenue for local governments rose 1.2% to $731.7 million, according to the Nov. 4 report.
The latest figures are based on sales made in September by businesses that report tax monthly, and sales made in July, August, and September by businesses that report tax quarterly.
"October state sales tax revenue was depressed, as expected, by declines in spending in oil and natural gas-related sectors," Hegar said. "Other major sectors of the Texas economy, including construction, information, and services, continued to show growth in tax remittances."
Among the state's 20 largest cities, the Dallas suburb of Irving saw the largest increase in revenues at more than 14%. Midland, the financial capital of the Permian Basin oil region of West Texas, recorded the largest decline at 16%. For the calendar year, Midland's sales tax revenue is down 5.5%.
Houston, the state's largest city, received 2.17% less than in the same month last year but is up 2.87% for 2015.
Oil and mineral-related revenue makes up 10% of the state's total tax collections but less than 5% of the Texas budget, according to state data.
