State Sales Tax Revenue Totals $2.72B in October

AUSTIN, TX – Texas Comptroller Glenn Hegar today announced that state sales tax revenue totaled $2.72 billion in October, 3.5 percent less than in October 2019.

The majority of October sales tax revenue was based on sales made in September and remitted to the agency in October.

“October sales tax collections from all major economic sectors declined significantly from year-ago levels, with the exception of collections from retail trade,” Hegar said. “The steepest declines were in receipts from oil- and gas-related sectors, with the rate of well drilling activity depressed almost 75 percent from the previous year.

“Receipts from the information sector were down, principally due to the federally mandated exemption of internet access charges from taxation. Receipts from retail trade increased, as adaptation to pandemic circumstances has spurred increased spending on building materials, home furnishings, sporting goods and alcohol for off-premise consumption, while spending at bars and entertainment venues has languished.

“Receipts from restaurants also remain down from a year ago, though significantly higher than in the spring, with some resumption of dine-in service after relaxation of capacity limits as well as increased sales of meals for pickup or delivery. In a departure from recent trends, receipts from clothing stores were up from a year ago for the first time since the onset of the pandemic.”