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Texas sales tax revenue totals $3.56 billion in November

Thursday, December 2, 2021

Texas sales tax revenue totaled $3.56 billion in November, Texas Comptroller Glenn Hegar announced Wednesday. 

November’s revenue marked a 19.4% increase from last November with a majority of sales tax revenue based on sales made in October and remitted to the agency last month. 

“November sales tax collections once again reached a new monthly high,” Hegar said. “Texas continues to see growth in taxable sales in every major economic sector. Sales tax remittances from the construction, manufacturing and wholesale trade sectors had substantial growth compared to last year, indicating increased economic activity in the state despite continuing supply chain or labor shortage issues. Increased drilling drove higher collections from the oil and gas mining sector, though still remaining significantly below pre-pandemic levels.”

The comptroller’s office said year-over-year increases for most tax revenue are impacted by base effects. Hegar’s office added that November 2020 revenue collections were suppressed by the COVID-19 pandemic. This November’s sales tax collections are up 11.8% compared to November 2019. 

Additionally, total sales tax revenue for the three months ending in November 2021 increased to 22.2% compared to the same period a year ago, and up 15.7% compared to 2019. The comptroller’s office said sales tax marks the largest source of state funding for the state budget, accounting for 59% of all tax collections.

“Collections from the retail trade sector remained strong in November, as they have been for most of the pandemic,” Hegar said. “Receipts from electronics and appliance stores had the sharpest increase compared to a year ago, while receipts from home improvement and furniture and home furnishing stores, already elevated last year by pandemic-induced shifts in consumer spending, again had double-digit percentage gains from a year ago. Receipts from clothing stores and sporting goods stores also had double-digit gains. Growth in spending at online merchandisers slowed in comparison to other sectors but still achieved growth year-over-year.

“The restaurant and service sectors continued their high growth compared to a year ago as Texans increasingly return to enjoying food and activities away from home. Receipts from the information sector also had strong growth over a year ago.”

Texas collected the following revenue from other major taxes, most of which were up sharply from a year ago due to base effects:

  • Motor vehicle sales and rental taxes — $518 million; up 25%  from November 2020, and up 23%  from November 2019;
  • Motor fuel taxes — $334 million, up 3% from November 2020, and up 2% from November 2019;
  • Oil production tax — $480 million, up 141% from November 2020, and up 39% from November 2019;
  • Natural gas production tax — $291 million, up 28% from November 2020, and up 143%  from November 2019;
  • Hotel occupancy tax — $58 million, up 78%  from November 2020, and down 4% from November 2019; and
  • Alcoholic beverage taxes — $141 million, up 47%  from November 2020, and up 19% from November 2019. 

San Marcos Record

(512) 392-2458
P.O. Box 1109, San Marcos, TX 78666