State Sales Tax Revenue Totaled $3.6 Billion in November

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(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $3.56 billion in November, 19.4 percent more than in November 2020. The majority of November sales tax revenue is based on sales made in October and remitted to the agency in November.

Lamb County realized a 26% increase in sales tax revenue compared to November of last year, with $179,334 in collections. Littlefield accounted for $133,791 of those collections; Olton collected $20,633; Sudan $15,673; Earth $7,602; and Amherst $1,633.

Anton, in Hockley County, showed a dramatic 165% increase from $2,500 last year to $6,626 this year.

Year-over-year increases for most tax revenues continue to be affected by base effects: Year-ago revenue collections to which this year’s collections are compared were suppressed by the pandemic. Compared to November 2019, sales tax collections were up 11.8 percent.

“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.

“Collections from the retail trade sector remained strong in November, as they have been for most of the pandemic. 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.”

Total sales tax revenue for the three months ending in November 2021 was up 22.2 percent compared to the same period a year ago and 15.7 percent compared to 2019. Sales tax is the largest source of state funding for the state budget, accounting for 59 percent of all tax collections.

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 percent from November 2020, and up 23 percent from November 2019;

• motor fuel taxes — $334 million, up 3 percent from November 2020, and up 2 percent from November 2019;

• oil production tax — $480 million, up 141 percent from November 2020, and up 39 percent from November 2019;

• natural gas production tax — $291 million, up 282 percent from November 2020, and up 143 percent from November 2019;

• hotel occupancy tax — $58 million, up 78 percent from November 2020, and down 4 percent from November 2019; and

• alcoholic beverage taxes — $141 million, up 47 percent from November 2020, and up 19 percent from November 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.