October 1, 2024

State Sales Tax Revenue Totaled $3.8 Billion in September

(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled nearly $3.85 billion in September, 1.5 percent more than in September 2023. The majority of September sales tax revenue is based on sales made in August and remitted to the agency in September.

“While overall September sales tax collections grew modestly, receipts were down across most major sectors compared with a year ago,” Hegar said. “Growth was negative from all major sectors driven primarily by business spending, with the largest percentage decrease coming from the mining sector. Remittances from the wholesale trade sector were below the prior year for the third time in four months.

“Sales tax receipts from sectors driven primarily by consumer spending were mixed, with collections from the services sector coming in above their September 2023 totals but remittances from the retail trade sector, the largest sector, decreasing 0.5 percent.

“Receipts from restaurants increased from a year ago, though at slightly below the rate of inflation for food away from home for August.”

Total sales tax revenue for the three months ending in September 2024 was up 0.7 percent compared with the same period a year ago, which is below the 2.5 percent annual Consumer Price Index increase reported for August and suggests that spending on taxable items is down from a year ago in real terms. Sales tax is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.

Texas collected the following revenue from other major taxes:

• motor vehicle sales and rental taxes — $590 million, down 7 percent from September 2023;
• motor fuel taxes — $333 million, up 1 percent from September 2023;
• oil production tax — $516 million, down 5 percent from September 2023;
• natural gas production tax — $199 million, down 5 percent from September 2023;
• hotel occupancy tax — $62 million, up 6 percent from September 2023; and
• alcoholic beverage taxes — $148 million, up 3 percent from September 2023.

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.