Comptroller Glenn Hegar Distributes $1 Billion in Monthly Sales Tax Revenue to Local Governments

Comptroller Glenn Hegar announced he will send cities, counties, transit systems and special purpose districts $1.03 billion in local sales tax allocations for June, 2% more than in June 2022.

State Sales Tax Revenue Totaled $3.8 Billion in May

Comptroller Glenn Hegar said state sales tax revenue totaled $3.84 billion in May, 4.1% more than in May 2022. “This slower growth is expected and in line with the economic outlook we detailed in our Biennial Revenue Estimate, as both the rate of inflation and growth in real economic activity slow as demand cools in the face of higher interest rate policy and reduced fiscal stimulus from the federal government” Hegar said.

Total sales tax revenue for the three months ending in May 2023 was up 5.6% compared with the same period a year ago. Texas collected the following revenue from other major taxes:

  • motor vehicle sales and rental taxes – $599 million, down 1 percent from May 2022;
  • motor fuel taxes – $340 million, up 6 percent from May 2022;
  • oil production tax – $497 million, down 17 percent from May 2022;
  • natural gas production tax – $199 million, down 52 percent from May 2022;
  • hotel occupancy tax –  $71 million, up 4 percent from May 2022; and
  • alcoholic beverage taxes – $156 million, up 2 percent from May 2022.

Fiscal 2023 franchise tax collections totaled $6.22 billion year-to-date through May. Compared with collections through May 2022, year-to-date franchise tax collections were up 20.7%.