Texas Comptroller Glenn Hegar this week said state sales tax revenue totaled $4.09 billion in April, which is 6.7 percent more than in April 2022. The majority of April sales tax revenue is based on sales made in March and remitted to the agency in April.
“April sales tax revenue growth, moderately in excess of general price inflation, suggests economic expansion continues in spite of higher interest rates and fears of a recession,” Hegar said. “The strongest growth continues to be from sectors primarily driven by business spending.
“Receipts from the oil and gas mining sectors once again showed the strongest growth among all sectors compared with the same month a year ago, with remittances approaching a 50-percent gain for the fourth straight month. Receipts from the construction and manufacturing sectors were up by double digits, while receipts from wholesale trade slowed and dipped below the year-ago level, as building materials prices have come down from the peak reached last year.
“Remittances from the retail trade sector were positive in April compared with the same month the previous year, after falling in March for the first time in 12 months. Within the sector, receipts from electronic shopping and grocery stores both showed double-digit increases compared with April 2022, and collections from general merchandise were up again after falling last month.
“Restaurant receipts increased in line with the inflation rate for food away from home in March.”
Total sales tax revenue for the three months ending in April 2023 was up 8.8 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 56 percent of all tax collections.
