Texas Comptroller Glenn Hegar reports that state sales tax revenue totaled $3.4 billion in May, the highest-ever monthly total and 30.1% more than in May 2020.
The five Lamb County cities received a combined total of $174,392.76 for May 2021. For the year to date, the five cities have received a combined total of $770,092.97, which is compared with their combined total of $709,646.00 for May 2020.
The City of Amherst received a return of sales tax, in the amount of $2,611.05, which is an increase of 8.03% more than the $2,416.92, it got for May, 2020. For the year, Amherst has received a total of $11,505.47, which is an increase of 9.75% more than the $10,483.03 it had by May 2020.
The City of Earth received a sales tax return for May, in the amount of $9,441.91. That is a huge increase of 19.83% more than the $7,878.87, it got for May 2020. Earth has received a total of $39,652.58 sales tax revenue so far this year, which is compared with the $34.221,98 it had for May 2020. That’s an increase of 15.86%.
The City of Littlefield’s sales tax revenue for May was $124,247.18, a 1.58% increase over last May’s return of $122,311.37. For the 2021 year so far, Littlefield has received a total of $560,655.84, which is compared with the 2020 amount of $527,830.46 for May.
Littlefield’s $124,247.18 revenue, is divided in two ($62,123.59 each). The city keeps half, and both of the two Economic Development Corporations receive half of the other half ($31,061.795 each).
The City of Olton’s revenue for May 2021 was $25,273.61, which is a 26.01% increase more than the 2020 return of $20,055.30. Olton has now received a total of $97,148.02 for 2021, which is compared with the $81.682.51 it had in May 2020.
The City of Sudan received a return of sales tax revenue, in the amount of $12,819.01 for May. That is a 13.31% increase over the May 2020 revenue, in the amount of $11,313.13. Sudan has received a total of $61,131.04 for sales taxes returned this year. For May 2020, Sudan had received a total of $55,428.02, which is an increase of 10.28%.
The City of Anton, in Hockley County, received a return of sales tax revenue, in the amount of $4,024.82, which is a 26.91% increase over the May 2020 return of $3,171.20. The City of Anton has received a combined total of $15,561.01 for 2021, which is compared with the $14,398.06 it had by May 2020. That’s an increase of 8.07%.
Comptroller Glenn Hegar reports: “As with April’s results, year-over-year increases for most tax revenues this month and in the coming months will be among the highest in the history of the data series. This is due to base effects: year-ago revenue collections to which this year’s collections are compared were severely suppressed by the pandemic. Compared to May 2019, sales tax collections were up 12.9 %.
The majority of May sales tax revenue is based on sales made in April and remitted to the agency in May.
“Resurgent consumer spending drove monthly state sales tax collections to a new high,” Hegar said. “Supported by the end of pandemic restrictions, further vaccination progress and declines in COVID-19 cases and hospitalizations, continued recovery in employment, and federal stimulus checks and enhanced unemployment benefits, receipts from all retail sectors other than grocery stores surpassed pre-pandemic levels.
“Sales at retailers that had benefited from pandemic spending – online and big box general merchandisers, building materials and home furnishings stores, sporting goods and hobby stores – continued at elevated levels, while sales at retailers severely depressed last year, such as clothing stores and electronics and appliance stores, rebounded sharply from last spring.
“Spending at restaurants also surpassed pre-pandemic levels, with increased dine-in patronage adding to still elevated take-out and delivery business. While total spending in the sector increased sharply from a year ago, the recovery was uneven, with business at large popular restaurant chains up sharply while many smaller venues continued to languish.
Spending at theme parks and live entertainment venues, though remaining below pre-pandemic levels, also was up significantly from a year ago, while business at fitness centers showed little evidence of recovery.
“Receipts from oil- and gas-related sectors fell below year-ago levels, as drilling and well development activity remained substantially below pre-pandemic levels despite the rise in crude oil prices in recent months.”
Total sales tax revenue for the three months ending in May 2021 was up 19.4 % compared to the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 59% of all tax collections.
Texas collected the following revenue from other major taxes, all of which were up sharply from a year ago due to base effects:
• Motor vehicle sales and rental taxes — $554 million, a record monthly amount; up 109% from May 2020, and up 29% from May 2019;
• Motor fuel taxes — $315 million, up 42% from May 2020, and down 0.4% from May 2019;
• Oil production tax — $364 million, up 303% from May 2020, and down 1% from May 2019;
• Natural gas production tax — $131 million, up 323 % from May 2020, and up 1% from May 2019;
• Hotel occupancy tax — $48 million, up 509% from May 2020, and down 18% from May 2019; and
• Alcoholic beverage taxes — $126 million, up 355% from May 2020, and up 8 % from May 2019.
For details on all monthly collections, visit the Comptroller’s Monthly State Revenue Watch. For an extensive history of tax policy developments and fees since 1972, visit our updated Sources of Revenue publication.