DALLAS -- Texas sales tax revenues rose 6.3% compared to the year earlier to $2.34 billion in July, marking the 52nd straight month of year-over-year increases, state Comptroller Susan Combs said.
For the fiscal year that began Sept. 1, 2013, sales tax revenues are 5.3% higher than the previous year's.
"The growth in sales tax revenues reflected strength in both business and consumer spending," Combs said. "The increase was led by remittances from the construction, services, and oil and natural gas-related sectors, as well as from retail trade and restaurants."
Combs will send cities, counties, transit systems and special purpose taxing districts August local sales tax allocations totaling $706.9 million, up 5.3% compared to August 2013.
In a separate report, John Heleman, chief revenue estimator for the Comptroller's office, said the Economic Stabilization Fund, or "Rainy Day Fund," created by oil and gas severance taxes, should contain $8.4 billion by the end of the 2015 fiscal year.
That figure includes $2 billion of diversions to Texas roads in oil-producing regions of the state if voters approve a state constitutional amendment Nov. 4, Heleman said.
The major factor fueling the state's economy is oil production, which has more than doubled since 2007, reaching more than 745 million barrels in 2013, according to Heleman's report.
Since the beginning of recovery from recession in the first quarter of 2010 to the first quarter of 2014, Texas personal income increased by 26.2%, compared to 18.9% nationally, Heleman said.
Single family housing permits during the 12 months ending in June 2014 are up 9.2% from the previous 12 months, and multi-family housing permits were up by 18.5%, he said.
Existing home sales during the 12 months ending June 2014 were up 7.5% from the previous 12 months. Sales of existing homes are approaching, but have not reached the 2006 sales level of approximately 292,000 units, he added.
Prices for both new and existing homes are also increasing, Heleman said. Over the past year, the average for each category has increased over $10,000 to $212,000 for new single family homes and to $194,000 for existing homes.
Texas had 11.55 million jobs in June 2014, an increase of 19,100 jobs over May and a gain of 371,000 jobs compared with June 2013. Texas employment has grown 3.3% compared with 1.8% for the United States, according to the report.
The broadest measure of the state's economy - gross state product - grew 4.4% in fiscal year 2013, compared to 2% growth for the overall U.S. economy, Heleman said.
Texas real gross product growth in fiscal 2014 is projected to be 3.5%, followed by growth of 3.6% in 2015, Heleman said.
The Texas population will average 26.8 million this year and increase to 27.3 million in 2015, he said.
"Periodically, and especially during a period of recovery from recession, rapid growth in tax revenue is observed," Heleman noted. "However, given that our revenue streams tend to move with the business cycle, such a period of rapid growth should not be expected to be ongoing. For example, the state sales tax grew at 9.4% and 12.6% in fiscal 2011 and 2012, respectively. Then the growth rate moderated to 7.2% in 2013. And we are currently tracking at 5.2% this year."
