Texas Sales Tax Revenue Surges in March as Brownfield Sees Slight Dip; County, Smaller Cities Show Growth
Texas continues to ride a wave of strong economic momentum, as Acting Texas Comptroller Kelly Hancock announced the state collected $4 billion in sales tax revenue in March 2026—a 10% increase compared to March 2025. The majority of March collections reflect purchases made in February, pointing to sustained consumer and business activity across the state.
Hancock noted that this marks the fastest growth rate since February 2023, signaling a Texas economy that continues to outperform inflation and national trends.
“Growth was particularly strong in sectors influenced primarily by business spending for the second month in a row, while receipts from the retail trade sector grew at their fastest pace since the pandemic,” Hancock said.
Brownfield Sees Slight Decline Despite Statewide Surge
While the state reported strong gains, the City of Brownfield experienced a modest dip in March collections. The city brought in $145,787.28, down 11.99% from $165,663.32 collected during the same month last year. Year-to-date figures show a similar trend, with Brownfield totaling $635,057.78, a slight 0.82% decrease compared to $640,308.47 at this point in 2025. Despite the decline, the year-to-date numbers indicate relatively stable performance, suggesting the decrease may be tied to short-term fluctuations rather than a long-term trend.
What’s encouraging is that the large picture of the economy across Texas and even here in Terry County remains strong. As always, our focus moving forward is to continue supporting local businesses, encouraging growth, and making smart investments that strengthen Brownfield’s economic foundation. We remain confident in our community’s resilience and our ability to build on that momentum in the months ahead.” Said Brownfield Mayor Eric Horton
Terry County Continues Strong Growth Trend
In contrast, Terry County posted another month of impressive growth. Monthly collections jumped from $52,930.65 in March 2025 to $73,892.48 this year—a 39.60% increase. Year-to-date totals also show strong upward momentum, climbing 20.66% from $254,874.42 to $307,544.71. The continued rise in county-level revenue may reflect increased regional business activity, particularly in sectors tied to agriculture, construction, and energy.
Meadow and Wellman Post Solid Gains
Smaller municipalities across Terry County also saw positive movement in March. The City of Meadow collected $1,492.10, marking a 19.45% increase from $1,249.08 during the same month last year. Year-to-date collections for Meadow now stand at $7,986.03, a 10.56% increase from $7,223.18 at this point in 2025.
The City of Wellman reported one of the largest percentage gains among local entities, bringing in $988.22 for the month—an impressive 65.58% increase from $596.79 last March. Year-to-date, Wellman has collected $5,218.09, representing a 23.23% increase from $4,234.38 during the same period last year. While the overall dollar amounts remain modest, the consistent growth highlights steady economic activity in these smaller communities.
Business Spending Driving Statewide Growth
According to the Comptroller’s Office, March’s strong performance was driven largely by business-related spending, with several key sectors posting significant gains. Wholesale trade, construction, and mining all increased by double digits, while manufacturing rose approximately 7 percent. Retail trade—the state’s largest sector—grew more than 9 percent, marking its strongest performance since mid-2022. Notably, online and electronic shopping surged more than 16 percent, and traditional retail categories such as clothing, general merchandise, and health and personal care also reported solid increases.
Restaurants and Services Continue Upward Trend
Consumer-facing sectors also showed strong performance in March, reflecting continued confidence among Texas consumers. Restaurant collections rose more than 7% compared to a year ago, outpacing inflation for food away from home and signaling steady demand for dining and hospitality. At the same time, revenues in the broader service sector increased nearly 9% year-over-year, highlighting strength in industries such as healthcare, personal services, and professional services. Together, these gains point to sustained consumer spending and a resilient economy, even as broader economic uncertainties remain.
Big Picture: Texas Economy Remains Strong
Overall, sales tax revenue for the three months ending in March 2026 is up 6.9% compared to the same period last year, reinforcing the steady growth trend seen across much of the state. As the largest source of funding for Texas, sales tax accounts for 58% of all tax collections, making it one of the most important indicators of economic activity. Strong performance in this category not only reflects increased consumer and business spending, but also plays a critical role in supporting essential state services such as education, infrastructure, and public safety. As a result, continued growth in sales tax revenue is often viewed as a clear sign of a healthy and expanding Texas economy.
Local Takeaway
While Brownfield saw a slight dip in March, the broader picture across Terry County and the state remains positive. Strong gains in surrounding areas and continued statewide growth suggest that the regional economy is still moving in the right direction.
For local leaders and businesses, the focus will now shift to whether Brownfield rebounds in the coming months and aligns with the upward trends seen across West Texas.
Horton reiterated saying, “As we review these numbers, it’s important to keep them in perspective. While March showed a dip compared to last year, our year-to-date collections remain relatively stable. I feel like this tells us it’s likely a short-term change rather than a long-term concern. Economic activity can vary month to month, especially in communities like ours that are closely tied to seasonal and regional factors.”
Horton also went on to talk about the future of a couple of issues.
A couple of things are going to happen in the very near future. We are devistated that Ruidoso Downs Racetrack has completely shuttered and Brownfield could lose traffic because of that. However, two new businesses will be here soon adding to the sale tax revenue, which is Bealls and ACE Hardware.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $415 million, down 23 percent from March 2025;
- motor fuel taxes — $303 million, up 3 percent from March 2025;
- oil production tax — $378 million, down 11 percent from March 2025;
- natural gas production tax — $180 million, down 38 percent from March 2025;
- hotel occupancy tax — $65 million, up 12 percent from March 2025; and
- alcoholic beverage taxes — $142 million, up 2 percent from March 2025.
