Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $2.76 billion in May, 10.2 percent more than in May 2017.
“Strong growth in sales tax revenue was apparent across all major economic sectors,” Hegar said. “While the most rapid growth was in remittances from the construction and oil- and gas-related sectors, significant gains also came from information services, restaurants and retail trade.”
Hegar also said state franchise tax revenue for May was $3.23 billion, 1.4 percent more than in May 2017. Year-to-date franchise tax revenue is up 11.3 percent. As anticipated in the Certification Revenue Estimate, lower refund activity early in the fiscal year contributed to higher than average net franchise tax collections.
Total sales tax revenue for the three months ending in May 2018 was up 10.4 percent compared to the same period a year ago. Sales tax revenue is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.
Revenue from other major taxes on motor vehicle sales and rentals, motor fuel and oil and natural gas production also rose in May 2018:
- motor vehicle sales and rental taxes — $424 million, up 11.7 percent from May 2017;
- motor fuel taxes — $309.9 million, up 1.8 percent from May 2017; and
- oil and natural gas production taxes — $416.5 million, up 56 percent from May 2017.