Acting Texas Comptroller Kelly Hancock reported that state sales tax revenue totaled $4.5 billion in May, representing a 6.6 percent increase over May 2025. Most of this revenue reflects sales made in April, remitted in May. Hancock noted that nearly all major economic sectors contributed positively to the growth, with manufacturing and construction both rising more than 15 percent. Wholesale trade increased nearly 6 percent, while the mining sector saw a slight decline.
Consumer-driven sectors also showed solid gains. Retail trade receipts were up over 3 percent, with electronic shopping outlets growing more than 13 percent and general merchandise stores increasing nearly 2 percent from last May. Services rose more than 8 percent, and restaurant receipts grew 4.3 percent, exceeding the rate of inflation for food away from home. Overall, total sales tax revenue for the three months ending in May 2026 rose 8.7 percent compared with the same period a year ago. Sales tax remains the largest funding source for the state, accounting for 58 percent of all tax collections.
Locally, sales tax receipts across Terry County cities present a mixed picture. Brownfield saw net payments of $258,923.16 for the period, down 11.95 percent compared with the same period last year. Year-to-date payments total $893,980.94, a 4.32 percent decline from 2025. Meadow reported stronger growth, with net payments of $1,907.75, a 23.2 percent increase over last year, and year-to-date collections of $9,893.78, up 12.79 percent. In contrast, Wellman experienced a sharp decline, with net payments down 80.65 percent to $1,312.09 and year-to-date receipts falling 40.73 percent to $6,530.18.
At the county level, Terry County collected $104,946.27 in sales tax for the period, a 3.56 percent decrease from last year, but year-to-date totals show healthy growth at $412,490.98, up 13.41 percent from 2025. The figures indicate that while some local municipalities experience short-term dips, overall county collections benefit from broader economic activity, aligning with the strong statewide growth in sales tax receipts.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $599 million, down 13 percent from May 2025;
- motor fuel taxes — $333 million, down 2 percent from May 2025;
- oil production tax — $677 million, up 64 percent from May 2025;
- natural gas production tax — $217 million, down 4 percent from May 2025;
- hotel occupancy tax — $74 million, up 6 percent from May 2025; and
- alcoholic beverage taxes — $156 million, up less than 1 percent from May 2025.
Fiscal 2026 franchise tax collections have reached $6.5 billion year-to-date through May. Compared with the same period in 2025, collections are down 0.5 percent, falling slightly below the projections outlined in the Comptroller’s 2026–27 Certification Revenue Estimate. Franchise tax reports were due May 15, but entities may request an extension until November 15. As a result, revenue from the most recent reporting year will continue to be received throughout November 2026.
