Texas collects record $3.9 billion in sales tax in July. Here’s where we spent our money.
Texas collected a record $3.88 billion in sales tax in July, the Texas comptroller announced Monday.
Despite inflation, people are buying more and spending more, said Kevin Lyons, a spokesperson for the Texas Comptroller of Public Accounts.
“The more people buy, the more sales tax the state is going to collect,” Lyons said. “Also the higher the prices are, the more taxes you’re going to spend. Even with inflation as it is, people are still buying more.”
Sales tax collections were up 14.7 % compared to July 2021; inflation was up 9.1%, the biggest increase since 1981.
The majority of July’s sales tax revenue is based on June sales, Comptroller Glenn Hegar said in a release.
“Receipts from retail trade and restaurants increased at a moderate pace, with some retail segments showing no growth or declining from a year ago as pent-up demand from the pandemic wanes and consumer spending priorities shift in response to inflation,” Hegar said in the release.
Clothing, home furnishings, sporting goods and hobby stores stayed flat compared to last year. Electronic and appliance sales declined, Hegar said in the release. Sales from auto dealers and home improvement stores showed double digit growth.
The sales tax revenue up 13.1% for the three months ending in July.
The sales tax is the largest supplier of state funding, bringing in 59% of all tax collections, according to the release.
Texas charges a 6.25% state sales tax on all retail sales, leases, rentals and taxable services. There is no tax on food.
Revenue from other taxes:
Motor vehicle sales and rental taxes — $605 million, up 5%.
Motor fuel taxes — $324 million, up 3%.
Oil production tax — $694 million, the highest monthly collections on record, up 84%.
Natural gas production tax — $532 million, the highest monthly collections on record, up 185%.
Hotel occupancy tax — $73 million, up 22%
Alcoholic beverage taxes — $149 million, up 13%
