Texas sales tax revenue grows 8.3% for quarter
DALLAS – Texas finished the first quarter of 2018 with sales tax revenue rising 8.3% over the same quarter last year, according to state Comptroller Glenn Hegar.
“Sales tax revenue rose for almost all major economic sectors, indicating growth in both business and consumer spending,” Hegar said. “Receipts from the oil and gas mining, construction and manufacturing sectors, as well as retail trade and restaurants, were up, while receipts from the information sector were slightly down from a year ago.”
In March, sales tax revenues of $2.4 billion represented a 7.2% increase over the same month last year.
Sales tax revenues have shown strong growth for seven months after a slight dip last August, the last month of the previous fiscal year. Each month’s report this year has set a record for the month. March is typically the lowest month for sales tax revenue.
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 fuels and oil and natural gas production also rose in March 2018, while tax receipts from motor vehicle sales and rentals were down, Hegar said.
Motor vehicle sales and rental taxes of $384.4 million were 4.8% lower than in March 2017.
Motor fuel tax revenue of $276.6 million represented a 3.9% increase year over year.
Oil and natural gas production taxes shot up 38% to $410 million, Hegar said.