Texas Shatters Total Tax Revenue in Fiscal Year 2022, Up 26% from 2021 | Texas

(The Center Square) — Texas tax revenue for fiscal year 2022 and monthly income for August broke records and forecast forecasts, Texas Comptroller Glenn Hegar said.

“Revenues continue to exceed even our most recent guidance as tax recoveries from all funds ended the fiscal year $841 million above the projection of our certification revenue estimate,” said said Hegar.

“To put it into perspective, only five times since 1988 has the tax revenue growth rate of all Texas funds exceeded the prior fiscal year by double digits – and those increases have ranged from 10% to 13% .

“This year’s growth rate was almost double the previous record at the time,” Hegar said. “Over the past several months, economic growth and inflation have led to increased sales tax collections as demand remains strong and businesses and consumers continue to pay high prices for goods.”

Texas residents and businesses paid a record amount of taxes, including:

  • General revenue revenue for fiscal year 2022 totaled $76.47 billion, up 26.4% from fiscal year 2021.
  • Revenue from all funds was $183.34 billion, up 7.5% from fiscal 2021.
  • Tax revenue from all funds was $77.21 billion, up 25.6% from fiscal 2021.
  • Sales tax revenue was $42.97 billion, up 19.3% from fiscal 2021.
  • Tax revenue from motor vehicle sales and leases was $6.45 billion, up 12.5% ​​from fiscal 2021.
  • Oil production tax revenue was $6.36 billion, up 84.4% from fiscal 2021.
  • Revenue from the natural gas production tax was $4.47 billion, up 185% from fiscal 2021.
  • Franchise tax revenue was $5.67 billion, up 25.2% from fiscal 2021.

The record amount of taxes paid by the oil and gas industry in Texas funds the Economic Stabilization Fund and the State Highway Fund. Within 90 days, $3.64 billion will be deposited into each of these funds as a direct result of taxes paid by the Texas oil and gas industry.

This is an increase from $1.46 billion deposited in each fund from November 2021.

August’s revenue totals also broke records. They are based on sales made in July and remitted to the State in August.

State sales tax revenue totaled $3.77 billion in August, up 13% from August 2021.

“The strong growth in August came from revenue paid by the oil and gas mining sector, which was up nearly 80% from a year ago,” Hegar said. “Construction, manufacturing and wholesale trade revenue posted double-digit growth for the ninth consecutive month, demonstrating continued strong spending by state-owned enterprises.”

He noted that revenue from nearly all segments of the retail industry was higher than a year ago, with online shopping and grocery store sales among the highest. Restaurant receipts also increased compared to last year.

Total sales tax revenue for the three months ending August 2022 increased 14.7% from the same period a year ago. Sales tax is the state’s largest source of funding for the state budget, accounting for 56% of all tax revenue.

In August, Texas received July paid motor vehicle sales and lease taxes totaling $651 million, the highest monthly collections on record, up 4% from August 2021.

The second highest total paid came from oil production taxes totaling $609 million, up 50% from August 2021, and $525 million from natural gas production taxes, up 144% compared to August 2021.

Recoveries of fuel taxes paid in July totaled $320 million, down 3% from August 2021; hotel resort taxes totaled $69 million, up 6% from August 2021; liquor taxes totaled $145 million, up 7% from August 2021.