Acting Texas Comptroller Kelly Hancock released on August 3, 2025, the totals for fiscal 2025 state revenues, in addition to announcing monthly state revenues for August. According to Hancock, the state sales tax revenue totaled $4.31 billion in August, 7.7 percent more than in August 2024. The majority of August sales tax revenue is based on sales made in July and remitted to the agency in August.
The City of Brownfield reported a revenue of $165,180.73, reflecting a 11.17% increase from $148,571.62 in August of the previous year. Year-to-date revenue also increased, rising from $1,616,790.07 to $1,1382,470.78, representing a 16.94% growth. Terry County experienced a boost in sales tax revenue, rising from $64,237.31 to $77,013.13, representing a 19.88% increase compared to the same period last year. Year-to-date revenue for Terry County also improved, increasing from $600,318.52 to $652,204.40, which represents a 8.64% rise.
The City of Meadow saw a decline in revenue for two months in row, reporting $1,863.77, which is a 14.48% decrease from $2,179.59 last year. Meadow’s year-to-date revenue also dropped by 19.01%, from $19,152.61 to $15,510.68 Similarly, the City of Wellman experienced a revenue decrease for the second month in a row, with figures falling from $710.44 to $663.44, representing a 6.61% decline. Like Meadow, Wellman’s year-to-date revenue has also decreased by 15.26%, going from $17,048.80to $14,445,93.
According to Hancock, Texas’ economy remains strong, with rising sales tax collections and healthy growth in key industries such as manufacturing, services, and retail. These positive numbers reflect the confidence of both families and businesses, ensuring that our state remains on solid footing. “State sales tax collections grew at the fastest pace since February 2023,” Hancock stated. “For the fiscal year, the result is a finish modestly ahead of the forecast.”
Among the sectors primarily influenced by business spending, receipts from the manufacturing sector showed particularly robust double-digit growth. The wholesale trade sector also experienced strong gains, while remittances from the construction sector increased slightly. However, receipts from the mining sector remained essentially flat.
In terms of large sectors driven mainly by consumer spending, the services sector reported the fastest growth, with receipts rising almost 10 percent. Retail trade also experienced strong growth, particularly from online general merchandisers and electronics and appliance stores. On the other hand, there were declines in receipts from home improvement centers and health and personal care stores compared to a year ago.
Receipts from restaurants increased nearly 5 percent from the previous year, surpassing the rate of inflation for dining out.
Overall, total sales tax revenue for the three months ending in August 2025 was up 5 percent compared to the same period the year before. Sales tax is the largest source of funding for the state budget, accounting for 58 percent of all tax collections.
Texas collected the following revenue from other major taxes in August:
- motor vehicle sales and rental taxes — $592 million, down 9 percent from August 2024;
- motor fuel taxes — $365 million, up 11 percent from August 2024;
- oil production tax — $445 million, down 18 percent from August 2024;
- natural gas production tax — $194 million, up 143 percent from August 2024;
- hotel occupancy tax — $68 million, down 1 percent from August 2024; and
- alcoholic beverage taxes — $142 million, up 2 percent from August 2024.
2025 Figures
In fiscal year 2025, General Revenue demonstrated a robust figure of $86.08 billion, showcasing a commendable 2.7 percent growth compared to fiscal year 2024. The cumulative revenue across all funds reached an impressive $183.05 billion, signifying a modest yet positive increase of 1.1 percent from the prior year. Tax collections across all funds totaled $84.2 billion, reflecting a solid rise of 2.8 percent from fiscal 2024.
Breaking down the figures further, sales tax revenue soared to $49.06 billion, representing a notable increase of 4 percent from the previous fiscal year. Revenue from motor vehicle sales and rentals, which plays a crucial role in the economy, amounted to $7.08 billion—up 3.7 percent compared to fiscal 2024. Similarly, franchise tax revenue stood firmly at $7.08 billion, enjoying a growth of 3.2 percent.
On a less positive note, oil production tax revenue experienced a significant decline, dropping to $5.38 billion, which marks a considerable decrease of 14.6 percent from fiscal 2024. Conversely, the natural gas production tax revenue showcased resilience, increasing to $2.48 billion and reflecting an impressive rise of 16.2 percent from the previous year. This contrasting trend highlights the evolving dynamics within the energy sector and its impact on the overall revenue landscape.
