DALLAS - Texas sales tax revenues hit a record $2.45 billion in May, marking 50 consecutive months of growth, according to state comptroller Susan Combs.
Running about $40 million higher than the previous record of $2.41 billion in November 2013, the May figures represented an 8.5% increase over the same month last year.
On a percentage basis, the May increase was the highest since the state notched a 9.1% growth rate in June 2013.
For the fiscal year that began Sept. 1, 2013, sales tax revenues are 5.4% higher than last year. In December, Combs projected that sales tax revenue would grow by 3.5% in the current budget year that ends Aug. 31.
With no income tax, Texas relies heavily on sales tax for operations. With its economy booming and its rainy day fund expected to reach more than $8 billion by the end of the fiscal year, Texas carries triple-A ratings from all three ratings agencies.
After collecting the May sales tax revenue, the comptroller distributes a share of the income to local governments.
This month, cities, counties, transit systems and special purpose taxing districts will receive $621.5 million from the May revenues, an increase of 11.6% from June 2013.
"Sales tax growth was evident across all major economic sectors," Combs said. "The growth was led by the retail and wholesale trade sectors, the oil and natural gas mining sector, and the services sector.
Among the state's largest cities, Houston sales tax revenue grew 7.62% to $51.3 million, while San Antonio leapt 16% to $24.9 million. Dallas sales tax revenues gained 8.1% to $20.5 million, followed by Austin with a 21.2% increase to $15 million. Fort Worth saw a 12.6% increase to $10.3 million.
Among the state's 20 largest cities, Arlington is the only one with a decrease for the fiscal year to date, down 4.68%.
On the broader economic front, job growth, sales tax collections and building permits all signal that the Texas economy continues to outpace the national economy, Combs said in a separate report this month.
Over the past year, Texas added jobs in all its major industries, she said.
Pre-recession Texas employment peaked at 10,638,100 in August 2008, a level that was surpassed in November 2011, and by April 2014 Texas added an additional 839,000 jobs, she said. The U.S. recovered all recession-hit jobs by May 2014 and added an additional 98,000 jobs.
Texas and the nation returned to economic growth in 2010 and 2011, respectively. In calendar 2012, Texas real gross domestic product grew by 4.8%, compared with 2.5% for the U.S., Combs noted.
The state's booming oil and gas industry reached a major milestone this month with Enterprise Products Partners' plan to build an ethane export facility on the Houston Ship Channel. The terminal would allow the oil and gas industry to sell its products through exports for the first time.
The Houston facility is expected to begin operations in the third quarter of 2016 under a 30-year operating agreement. The Port of Houston, host to the largest petrochemical manufacturing complex in the U.S., leads the nation in exports.
