Texas Comptroller Glenn Hegar released the sales tax report for December 2024 yesterday. According to Hegar, the state’s sales tax revenue reached $4.1 billion in December, representing a 1 percent increase compared to December 2023. Most of the December sales tax revenue is derived from sales made in November, which are then remitted to the agency in December.
In December 2024, the City of Brownfield reported a sales tax revenue of $148,340.76, representing an increase of 18.70% compared to last December’s revenue of $124,967.46. Year-to-date figures for Brownfield also show growth, rising by 9.01% from $1,696,548.29 to $1,849,418.90.
Terry County’s rally rebounded from a drop of 2.06% in November to a 9.24% increase in December, generating $64,642.48 compared to $59,169.63 in December 2023. However, year-to-date figures for Terry County have declined again, this time by 3.29%, falling from $837,466.38 to $809,830.58.
In December 2024, the City of Meadow generated $1,818.05 in sales tax revenue, which represents a 7.90% increase from $1,684.82 the previous year. However, despite the year-over-year increase, the year-to-date figures for Meadow show a significant decline, dropping 74.04% from $96,321.73 to $25,002.62.
In contrast, the City of Wellman saw an increase in sales tax revenue for December 2024, rising by 34.42% from $727.65 to $978.15. Wellman’s year-to-date revenue continues to rise, this time by 133.68%, increasing from $8,291.79 to $19,376.33.
Hegar said on Wednesday, “Overall sales tax collections grew modestly compared with December 2023, and at less than the rate of general price inflation. This suggests a lack of growth in real sales taxable activity, as continued high interest rates and depleted savings constrain spending, even as overall employment and income continue to grow.”
According to Hegar, The construction sector saw the largest increase in receipts among major sectors. In contrast, remittances from the manufacturing sector remained nearly unchanged, while receipts from the mining and wholesale trade sectors were significantly lower than last year.
In major sectors primarily influenced by consumer spending, receipts from the services sector were moderately higher than those in December 2023. In contrast, receipts from the retail trade sector experienced only slight growth. Within the retail trade sector, grocery store receipts saw a significant increase, while receipts from general merchandise and clothing stores remained relatively stable. Online shopping collections grew only modestly. Additionally, receipts from home improvement and furniture stores declined significantly compared to a year ago.
Hegar also stated, “Receipts from restaurants increased from a year ago, coming in above the rate of inflation for food away from home for November.”
Total sales tax revenue for the three months ending in December 2024 increased by 3.7% compared to the same period the previous year. Sales tax is the largest source of funding for the state budget, making up 58% of all tax collections.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $583 million, up 12 percent from December 2023;
- motor fuel taxes — $313 million, down 1 percent from December 2023;
- oil production tax — $431 million, down 14 percent from December 2023;
- natural gas production tax — $214 million, up 25 percent from December 2023;
- hotel occupancy tax — $61 million, up 47 percent from December 2023; and
- alcoholic beverage taxes — $150 million, up 10 percent from December 2023.
