Texas Comptroller of Public Accounts
FOR IMMEDIATE RELEASE
February 1, 2023
(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $4.11 billion in January, 6.6 percent more than in January 2022. The majority of January sales tax revenue is based on sales made in December and remitted to the agency in January.
“While state sales tax collections reached another all-time high, it is important to note that the rate of growth from the previous year was the lowest in the 22 months since the end of pandemic restrictions,” Hegar said. “This reflects slowing in the rate of inflation and slowing growth in real economic activity as well. Unfortunately, inflation continues to erode the purchasing power of Texas consumers as the consumer price index rate for December was 6.5 percent.
“Gains in tax receipts from sectors driven by business spending continued to lead the growth, with the largest gains coming from the mining sector compared with a year ago. Receipts from the manufacturing, construction and wholesale trade sectors continued to grow robustly year over year, but at lower rates than in recent months as inflation subsides for items such as construction materials.
“Overall, retail trade receipts grew only slightly and at less than the rate of inflation for consumer goods. Within the retail sector, remittances from the electronic shopping segment led the way as people celebrated the holidays. Receipts from big box retailers and department stores declined, while receipts from dollar stores were up sharply from a year ago — with consumers choosing lower-cost retail options over other outlets during the peak of the Christmas shopping season.
“Receipts from restaurants were once again about in line with inflation in food away from home.”
Total sales tax revenue for the three months ending in January 2023 was up 9.4 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 56 percent of all tax collections.
Texas collected the following revenue from other major taxes:
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.