State Tax Revenue Rises To Over $ 3.1 Billion In June
Texas Comptroller Glenn Hegar said state tax revenue stood at $ 3.16 billion in June, up 18.1 percent from June 2020. The year-over-year increases on the other for most of this month’s tax revenue has been affected by base effects: the collections are being compared have been severely wiped out by the pandemic. Compared to June 2019, sales tax collections increased by 10.4%.
The majority of June sales tax revenue is based on sales made in May and remitted to the agency in June.
âMonthly state sales tax collections have remained exceptionally strong, with revenues from all major sectors other than oil and gas exceeding pre-pandemic levels,â Hegar said in a statement. . âHigh spending at clothing stores, electronics and appliance stores, sporting goods stores, building supply and home furnishings stores, some general merchants and online retailers continued. , although the growth in online and big box sales has slowed as consumers have reverted to other physical retail alternatives. “
He said remittances from food and beverage stores were being limited by declining sales of alcoholic beverages for off-premises consumption as consumers returned to restaurants and bars.
âCollections from electric utilities have increased sharply, reflecting the use of air conditioning in shopping malls and office buildings that were subject to closure a year ago. Receipts from the manufacturing and wholesale sectors also increased significantly, reflecting continued strong demand for computer products and building materials, âhe added.
News sector revenues remained below last year’s levels, due to federal pre-emption of state taxation of Internet access services.
âRestaurant receipts are still well above pre-pandemic levels, with sustained activity in take-out establishments and a modest recovery in some food outlets,â Hegar said. “However, some restaurant-dining chains continue to operate at lower levels due to permanent closures in some locations.”
Total sales tax revenue for the three months ending June 2021 increased 26.4% from the same period a year ago and 14.1% from 2019. Sales tax is the main source of state funding for the state budget, accounting for 59% of all tax collections.
Texas has collected the following revenue from other significant taxes, all of which have risen sharply from a year ago due to base effects:
- Motor vehicle sales and leasing taxes – $ 591 million, a record monthly amount; up 50% compared to June 2020 and 39% compared to June 2019;
- Fuel taxes – $ 315 million, up 26% from June 2020 and down 4% from June 2019;
- Tax on Oil Production – $ 363 million, up 339% from June 2020 and down 0.1% from June 2019;
- Tax on natural gas production – $ 159 million, up 689% from June 2020 and 28% from June 2019;
- Hotel occupancy tax – $ 54 million, up 137% from June 2020 and down 7% from June 2019; and
- Taxes on alcoholic beverages – $ 138 million, a record monthly amount; up 112% compared to June 2020 and 12% compared to June 2019.
Franchise tax collections for fiscal 2021, whose reporting deadline has been extended to June from the usual May 15 due date, totaled $ 4.24 billion since the start of the year until June. in June. Last year the deadline was extended to July. Compared to collections until July 2020, collections of franchise taxes since the beginning of the year have increased by 1.7%.