(AUSTIN) — The majority of February sales tax revenue is based on sales made in January and remitted to the agency in February. For this period, however, the Feb. 22 due date for state taxes and fees to be reported and paid, was extended by one week, to March 1, due to effects of the winter storm.
Texas Comptroller Glenn Hegar reported that state sales tax revenue totaled $2.51 billion in February, 13.3% less than in February 2020; however, after adjusting the February totals to account for March 1 activity, February sales tax revenue totaled $2.68 billion, down 7.5% from February 2020.
The five Lamb County Cities received a combined return of a total of $149,115.40 for this period, which is compared with the $128,931.89 they received last year at this time.
Together, they have received a return of $470,645.83 in sales taxes this year, which is compared with the $428,142.57 that was returned last year, by this time.
The City of Amherst, which collects a 1.250% tax rate, received a return of $1.750.70 for this period, which is compared with last year’s $1,653.05. That’s a 5.90% increase. For the year so far, Amherst has received a total of $6,711.51 of sales tax returns, while in 2020, it had $6,381.24, an increase of 5.17%.
The City of Earth collects a sales tax rate of 1.500%. It received a return of $6,887.80 for February, which is compared with the $5,932.00 it got in 2020. That’s a 16.11% increase. For the year, Earth has received a total of $23,765.05, a 17.19% increase over the $20,278.22 it had last year.
The City of Littlefield collects a sales tax rate of 2.000% on every dollar. It received a return of $114,719.64, which is a 21.90% increase over last year’s $94,106.02. Littlefield’s total for this year, to date, is $346,264.04, which shows an 8.31% increase over last year’s $319,689.71 at this time.
Littlefield’s sales tax return of $114,719.64 is divided three ways. Half of it ($57,359.82) stays with the city, while the other half is divided equally ($28,679.91 each) between the Type A and Type B Economic Development Corporations.
The City of Olton also collects a 2.000% sales tax rate on the dollar. Olton’s return this period was in the amount of $15,607.91, which is down by -3.59% from the $16,189.98 it received in 2020. For this year to date, Olton has received a total of $55,253.13 in sales tax returns, which is compared with the $47,991.46 it had by the same peroid last year. That’s a 15.13% increase.
The City of Sudan also collects a 2.000% sales tax rate. It received a sales tax return in the amount of $10,149.35 for the current period, which is down by -8.15% from the $11,050.84. Sudan’s total returns for the year are $38,652.10, which is a 14.34% increase over the $33,801.94 it had last year at this same time.
Over in Hockley County, the City of Anton, which collects a 1.000% sales tax rate, received a sales tax return in the amount of $2,630.95, a -25.24% drop from last year’s $3,519.43. To date, the City of Anton has received a total of $9,149.55 in sales tax returns, which is compared with the $9,260.12 it had at this time in 2020. That’s a -1.19% decrease.
Comptroller Glenn Hegar explains: “The pattern in sales tax collections we’ve seen for the past several months continued, with receipts from the retail trade sector showing gains over the prior year while receipts from oil- and gas-related sectors show deep declines.”
Hegar continued: “Receipts from the service sector, as well as from restaurants and bars, also remain down significantly, as many of these businesses had occupancy restrictions or were required to be shuttered during the COVID-19 pandemic.
“Sales tax collections from the mining, construction, manufacturing, wholesale trade and equipment leasing sectors continue to be depressed. Much of the sales in these sectors are tied to oil and gas drilling activity, which has picked up some since the downturn last spring, but remains well below what it was a year ago.
“Receipts from online, sporting goods, furniture and home improvement retailers continue to be elevated, a trend apparent since the start of the pandemic as Texans spend more time at home.”
Total sales tax revenue for the three months ending in February 2021, after adjusting for March 1 activity, was down 4.2%, 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. The effects of the COVID-19 pandemic continued to be evident in some sources of revenue in February 2021.
Texas collected the following revenue from other major taxes, some of which also were affected by the extension of the Feb. 22 deadline:
Motor vehicle sales and rental taxes — $370 million, down 13.8% from February 2020, but after accounting for March 1 activity, total collections were $371 million, down 13.6% from February 2020;
Motor fuel taxes — $286 million, down 5.2% from February 2020; —
Oil production tax — $291 million, down 21.8% from February 2020;
Natural gas production tax $113 million, down 17.1% from February 2020, but after accounting for March 1 activity, total collections were $114 million, down 15.7% from February 2020;
Hotel occupancy tax — $25 million, down 51.4% from February 2020, but after accounting for March 1 activity, total collections were $27 million, down 46.3% from February 2020;
And alcoholic beverage taxes — $70 million, down 36.5% from February 2020, but after accounting for March 1 activity, total collections were $84 million, down 24.2% from February 2020.
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 the updated Sources of Revenue publication.