Texas Comptroller Glenn Hegar this week said state sales tax revenue totaled $3.37 billion in March, 28.5 percent more than in March 2021. However, after adjusting last year’s March totals to account for February sales tax returns not collected until March 2021 due to Winter Storm Uri, the increase for March of this year is actually 37.2 percent higher.
State sales tax collections reached a new high for the month of March, with exceptionally strong growth evident across all major economic sectors, Hegar said.
“Surging consumer spending as the omicron wave recedes — supported by strong employment and wage growth and savings accumulated during the pandemic — spurred double-digit growth in receipts from almost all retail segments. Receipts from segments stimulated by pandemic spending patterns, including online general merchandisers and home improvement, furniture and sporting goods stores, continue to exhibit very strong growth, while receipts from clothing and accessories stores and electronics and appliance stores, segments depressed by the pandemic, continue to rebound.
Hegar also reported growth in receipts from sectors such as oil and gas, mining, construction, manufacturing, and wholesale trade.
Total sales tax revenue for the three months ending in March 2022, after adjusting for March 2021 activity, was up 27.3 percent compared to the same period a year ago.
Sales tax is the largest source of state funding for the state budget, accounting for 59 percent of all tax collections.
