Texas Comptroller Glenn Hegar this week said state sales tax revenue totaled $3.99 billion in July, 2.7 percent more than in July 2022. The majority of July sales tax revenue is based on sales made in June and remitted to the agency in July.
“The rate of sales tax revenue moderated last month, consistent with a slowing pace of economic growth and declining price inflation,” Hegar said. “Growth in receipts from sectors driven by business spending, which have seen the largest increases in year-over-year remittances this year, slowed markedly, with receipts from the manufacturing and wholesale trade sectors falling below last year’s levels. Receipts from oil and gas mining grew at the slowest pace since May 2021, when the sector began its sharp recovery from the pandemic.
“Remittances from the retail trade sector overall were slightly down from a year ago. Among retail subsectors, receipts from the electronic shopping sector grew robustly as online sales continue to win market share from physical stores. Receipts from home improvement centers and furniture and home goods stores were down once again, as the home remodeling boom of the pandemic continues to fade. Receipts from sporting goods and hobby stores, another sector that had flourished in the pandemic, also dropped significantly.
“Restaurant receipts increased slightly less than the inflation rate for food away from home in June.”
