Texas Sales Tax Revenue Climbs 7.1% in August

by Eric

Texas continued to see strong sales tax collections in August, with state revenue reaching $4.62 billion, according to Texas Comptroller Don Huffines. That total represents a 7.1% increase compared with August 2025.

Most of the sales tax revenue collected in August reflects purchases made during July and then reported and remitted to the state the following month.

Huffines pointed to the increased collections as a positive sign for the Texas economy and said the additional revenue could also provide lawmakers with an opportunity to offer further property tax relief.

“The increased revenue from state sales tax is a positive sign for meaningful property tax relief for Texans,” Huffines said. “The Legislature should prioritize lowering the cost of homeownership by dedicating elevated sales tax collections to reducing property taxes.”

Sales tax allocations across Terry County showed mostly positive movement in the latest reporting period, with Brownfield, Meadow and Terry County all posting solid gains compared with the same period last year.

The City of Brownfield received a net payment of $243,903.33 for the current period, up 13.23% from $215,391.48 during the comparable period last year. Brownfield’s year-to-date payments now total $1,514,274.54, compared with $1,451,609.34 at this point last year, representing a 4.31% increase.

Meadow also saw continued growth. The city received $1,901.93 for the current period, a 14.97% increase over last year’s comparable payment of $1,654.26. Meadow’s year-to-date total stands at $14,468.74, up 6.02% from $13,646.91 last year.

Wellman recorded a smaller increase for the current period, receiving $609.42 compared with $601.75 last year, an increase of 1.27%. However, Wellman remains down significantly for the year. Its year-to-date payments total $8,921.61, compared with $13,782.49 last year, a decrease of 35.26%.

Terry County posted the strongest overall year-to-date growth among the figures shown. The county received $98,843.65 for the current period, up 16.53% from $84,821.24 last year. Year-to-date payments have reached $697,717.11, compared with $575,191.27 during the same period last year, an increase of 21.30%.

Overall, the latest numbers show positive sales tax activity across most of Terry County, particularly for the county government and the cities of Brownfield and Meadow, while Wellman continues to face a sizable year-to-date decline despite a slight increase in the most recent payment.

Several major sectors of the Texas economy reported year-over-year gains. Business-related spending remained strong, particularly in the construction and mining industries. Sales tax collections from the manufacturing sector increased 5.2% compared with August 2025, while wholesale trade collections were up 1.7%.

Consumer spending also provided a significant boost to the state’s numbers. Retail trade sales tax collections increased nearly 10% from the same month last year. Online shopping continued to be a major driver, with collections from online purchases increasing by more than 20% for the second consecutive month.

The service sector also showed strong growth, with collections increasing 8.2% compared with August 2025. Restaurants brought in 3.8% more sales tax revenue than a year ago, with that increase exceeding the rate of inflation for food purchased away from home.

Through the first eight months of 2026, Texas has collected approximately $35.2 billion in sales tax revenue, an increase of 7.3% compared with the same period in 2025.

Sales taxes remain the largest source of tax revenue supporting the Texas state budget, accounting for approximately 58% of all state tax collections.

For Terry County and its communities, the statewide increase comes as the latest local sales tax allocations also showed positive results in several areas. Brownfield’s latest payment increased 13.23% from a year ago, Meadow was up 14.97%, and Terry County’s payment increased 16.53%. Wellman posted a smaller 1.27% increase for the latest reporting period, although its year-to-date collections remain below last year’s levels.

Texas collected the following revenue from other major taxes in August:

  • motor vehicle sales and rental taxes — $670 million, up 13% from August 2025;
  • motor fuel taxes — $342 million, down 6% from August 2025;
  • oil production tax — $526 million, up 18% from August 2025;
  • natural gas production tax — $202 million, up 4% from August 2025;
  • hotel occupancy tax — $76 million, up 12% from August 2025; and
  • alcoholic beverage taxes — $150 million, up 6% from August 2025.

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