Texas Comptroller Glenn Hegar announced the state sales tax revenue on Monday, June 2, 2025. He reported that total sales tax revenue for May reached $4.2 billion, reflecting a 4.7 percent increase compared to May 2024. Most of the sales tax revenue for May comes from sales that occurred in April and were remitted to the agency in May.
The City of Brownfield experienced a significant increase in sales tax revenue, totaling $294,079.60. This represents a 39.46% increase compared to May 2024, which had revenue of $210,865.92. Additionally, year-to-date revenue for Brownfield has reached $934,388.07, marking a 20.41% increase from the previous total of $775,982.79.
Terry County also saw a notable rise in sales tax revenue, bringing in $108,826.88, compared to $86,944.66, which reflects a 25.16% increase. Similar to Brownfield, the County’s year-to-date revenue has increased to $363,701.30, an 8.05% increase from $336,603.49.
The smaller cities in Terry County experienced a decline in sales tax revenue. The City of Meadow saw a decrease of 23.35% in May 2024, with revenue falling from $2,020.19 last year to $1,548.46 this year. Year-to-date, Meadow’s revenue also decreased by 10.50%, dropping from $9,800.79 to $8,771.64. Similarly, the City of Wellman faced a reduction in sales tax revenue, bringing in $6,783.36 in May 2024, which represents an 18.19% decrease from $8,292.33 last year. Year-to-date, Wellman’s revenue is down 12.99%, decreasing from $12,663.69 to $11,017.74.
Hegar stated, “State sales tax collections grew solidly compared with May 2024, and this follows very strong collections in April and was more than twice the overall rate of general price inflation.”
Remittances from sectors primarily driven by business spending presented a mixed bag of results. While receipts from the construction and wholesale trade sectors fell short of their May 2024 levels, the manufacturing sector delivered impressive gains, significantly surpassing collections from the previous year. Notably, receipts from the mining sector have surged by double digits for the second consecutive month, highlighting its robust recovery.
Remittances from the retail trade sector, the largest sector, grew strongly compared with a year ago. Remittances from general merchandise stores were particularly strong following a decline in April, increasing by double digits compared with the same month a year ago. Collections from the electronic shopping subsector also grew robustly compared with last April, while receipts from grocery stores were slightly down.
Receipts from restaurants were up from a year ago and came in slightly above the rate of inflation for food away from home for April.
Total sales tax revenue for the three months ending in May 2025 was up 3.1 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $693 million, up 9 percent from May 2024;
- motor fuel taxes — $339 million, up 4 percent from May 2024;
- oil production tax — $411 million, down 26 percent from May 2024;
- natural gas production tax — $227 million, up 26 percent from May 2024;
- hotel occupancy tax — $70 million, down 1 percent from May 2024; and
- alcoholic beverage taxes — $155 million, up 2 percent from May 2024.
It’s important to note that franchise tax collections for fiscal year 2025 reached $6.57 billion year-to-date through May. This figure represents a 2.9 percent increase compared to the collections for the same period in May 2024. However, this growth is below the projections outlined in the Comptroller’s 2026-27 Biennial Revenue Estimate.
