Texas Sales Tax Collections Higher Than a Year Ago


AUSTIN, TX – For the first time in several months, Texas’ state sales tax revenue showed an increase when compared to the same timeframe from last year despite the ongoing coronavirus pandemic, Texas Comptroller Glenn Hegar said Monday.

According to Comptroller reports the state of Texas collected roughly $2.98 billion in sales tax revenue in the month of July approximately 4.3% more revenue than in July of 2019.

In a statement Monday Hegar said, That revenue, which mainly reflects general purchases made in June, was “better than expected, despite high unemployment numbers across the state due to the pandemic."

“The increase was due to a surge in collections from the retail trade sector,” Hegar stated, noting that the receipts from other major sectors in the state, such as construction, services and restaurants, “showed significant declines.”

Currently state sales tax revenue is the state of Texas' single largest source of funding.

Since the pandemic hit, Hegar, along with many other state officials have warned that the financial fallout could prompt a months-long if not years-long rehabilitation period for the state.

The state's records indicate the total sales tax revenue for the months of May, June and July this year was down approximately 5.3% compared to the same three month period last year.

Although the Texas Legislature will face an uphill battle with the state's budget process when it meets for their regular session in January of 2021, last month Hegar revised his initial revenue estimate, claiming that the general revenue available for the state’s current two-year budget would be roughly $11.5 billion less than he originally estimated.

Hegar also added the state was on track to end the 'biennium', which has grossed an estimated deficit of $4.6 billion in revenue that runs through August of 2021.


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Unless the state had a terrible quarter in 2019 there is no way the tax revenue could be higher during this covid_19 shutdown. I suppose we can count out any new tax increases.

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