The Texas Comptroller of Public Accounts, Glenn Hegar, announced that state sales tax revenue reached $3.81 billion in Oct., experiencing a 0.3 percent decrease compared to Oct. 2022. The cumulative sales tax revenue for the three months concluding in Oct. 2023 increased by 2.7 percent when compared to the corresponding period in the previous year, according to a press release by the Texas Comptroller of Public Accounts.
The Texas Comptroller of Public Accounts reported that motor vehicle sales and rental taxes rose by 3 percent to $606 million, motor fuel taxes increased by 1 percent to $316 million, and the oil production tax surged by 8 percent to $586 million. Conversely, the natural gas production tax decreased by 53 percent to $192 million. Hotel occupancy tax showed a 2 percent increase, adding $67 million, and alcoholic beverages taxes rose by 2 percent, contributing $154 million. The sales tax figures primarily reflect sales from Sept., remitted to the agency in Oct., said the Texas Comptroller of Public Accounts.
“For the first time in 31 months following the end of pandemic restrictions, monthly state sales tax collections failed to grow on an annual basis,” said Hegar. “Oct. sales tax collections are in line with our recent Certification Revenue Estimate, which predicted slower economic growth in the months ahead. Contributing to the year-over-year decline was erratic refund activity this month, as well as notable declines in receipts from some sectors which could indicate a slowing economy."
According to a press release by the Texas Comptroller of Public Accounts, Hegar said, “Receipts from restaurants grew only modestly and at less than the rate of inflation for food away from home. But spending for live entertainment continued to boom, spurring double-digit growth in receipts from music, arts and sporting events.”