Texas Comptroller Susan Combs raised her revenue estimate for the next two years by $1.2 billion based on the expected stronger performance of sales and oil production taxes.
Press release from the comptroller:
(AUSTIN) — Texas Comptroller Susan Combs increased her state revenue estimate today based on a strengthening economy.
“I am raising the general revenue estimate for the next biennium by $1.2 billion,” Combs said. “Maintaining a cautious outlook for the next biennium, my office estimates sales tax, oil production tax and motor vehicle sales tax will bring in more revenue than previously estimated in the next biennium. We are updating the revenue estimate after reviewing numerous economic indicators and yesterday’s franchise tax filing deadline.”
Today, the Comptroller is increasing the sales tax revenue estimate for the fiscal 2012-13 biennium by an additional $1 billion.
The state’s motor vehicle sales tax revenue projection for the fiscal 2012-13 biennium is increased by an extra $100 million.
Oil production revenue is projected to increase by an additional $400 million for the 2012-13 biennium. Three-quarters of this extra oil production revenue, $300 million, is constitutionally reserved for future deposit into the Rainy Day Fund and the remaining $100 million will be available for general revenue spending.
“I will keep working with lawmakers as they go through the process of finalizing a budget for the 2012-13 biennium,” Combs said. “While Texas continues to add jobs as our state recovers from the recent recession, the state’s housing market is sluggish, with new home construction levels similar to those seen in the mid-1990s. We will also monitor different aspects of the economy, including any potential burden on consumers and businesses if oil prices move higher.”