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Texas sees 6.5% decrease in sales tax revenue, brings in $2.67 billion in June

Sunday, July 5, 2020

Texas brought in $2.67 billion in state sales tax revenue in June, a 6.5% decrease from June 2019’s revenues, according to Comptroller Glenn Hegar.

The comptroller’s office stated that the majority of June’s sales tax revenue is based on sales made in May, which saw relaxed widespread social distancing requirements throughout the state.

“The decline in state sales tax collections was driven principally by steep drops in remittances from oiland gas-related sectors,” Hegar said in a statement. “Collections from the construction and amusement service sectors were also sharply down.

“While collections from restaurants also were depressed, the extent of the decline was checked by increased takeout and delivery sales,” Hegar added. “Retail trade receipts rose significantly, buoyed by increased online shopping and building material purchases, as business premises were modified for COVID-19 precautions.”

Hegar added that retail sales were likely boosted by increased alcoholic beverage sales at package, grocery and convenience stores.

According to the comptroller’s office, total sales tax revenues for three months ending in June 2020 was down 9.7% compared to the same span last year. The decrease in sales tax revenues, which is the largest source of Texas’s funding for the state budget, can be attributed to the effects of the economic slowdown caused by the COVID-19 pandemic and low oil prices.

Texas collected the following revenue from other major taxes:

•Motor vehicle sales and rental taxes — $394 million, a 7.6% decrease from June 2019, however, it was an improvement from results in April and May;

•Motor fuel taxes — $250 million, 24% decrease from June 2019;

• Natural gas production tax — $20 million, down 84 percent from June 2019.

•Oil production tax — $83 million, down 77 percent from June 2019.

•Hotel occupancy tax — $23 million, down 61% from June 2019, but an improvement from a decline in May.

•Alcoholic beverage taxes — $65 million, down 47 percent from June 2019, significantly better than May’s results.

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