The Acting Texas Comptroller, Kelly Hancock, released the state sales tax revenue report on August 4, 2025, which totaled $4.19 billion in July, 4.9 percent more than in July 2024. The majority of July sales tax revenue is based on sales made in June and remitted to the agency in July.
The City of Brownfield reported a revenue of $215,391.48, reflecting a 24.29% increase from $173,286.76 in July of the previous year. Year-to-date revenue also increased, rising from $1,233,899.16 to $1,451,609.34, representing a 17.64% growth.
Terry County experienced a boost in sales tax revenue, rising from $74,786.94 to $84,821.24, representing a 13.41% increase compared to the same period last year. Year-to-date revenue for Terry County also improved, increasing from $536,081.21 to $575,191.27, which represents a 7.29% rise.
Unfortunately, the City of Meadow saw a decline in revenue, reporting $1,654.26, which is a 23.11% decrease from $2,151.60 last year. Meadow’s year-to-date revenue also dropped by 19.59%, from $16,973.02 to $13,646.91.
Similarly, the City of Wellman experienced a revenue decrease, with figures falling from $1,779.82 to $601.75, representing a 66.19% decline. Like Meadow, Wellman’s year-to-date revenue has also decreased by 15.64%, going from $16,338.36 to $13,782.49.
According to Hancock, “the overall state sales tax collections showed strong growth last month compared with July 2024. Results from the major economic sectors were varied, but collections in July continued the trend of solid growth seen lately,” said Hancock.
Receipts from sectors primarily impacted by business spending showed mixed results. The mining sector demonstrated strong growth compared to the same month last year. In contrast, remittances from the construction sector remained essentially flat, while collections from the manufacturing sector declined following three consecutive months of robust growth.
Among the larger sectors primarily driven by consumer spending, the retail trade and services sectors both experienced year-over-year increases. Retail trade, being the largest sector, saw a rise of less than 2 percent compared to last July. Notably, growth in receipts from online general merchandise retailers continued to outpace that of other retail subsectors.
Receipts from home improvement stores rebounded significantly after declines in three of the previous four months. Clothing and accessory stores reported a third consecutive month of mid-single-digit growth. However, receipts from grocery stores and gasoline stations experienced slight decreases compared to the same period last year.
In the services sector, remittances rose nearly 6 percent compared to July 2024. Receipts from restaurants increased nearly 2 percent from the previous year but fell short of the inflation rate for food consumed away from home.
Overall, total sales tax revenue for the three months ending in July 2025 increased by 4 percent compared to the same period last year. Sales tax remains the largest source of state funding, accounting for 58 percent of all tax collections.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $622 million, up 4 percent from July 2024;
- motor fuel taxes — $301 million, down 6 percent from July 2024;
- oil production tax — $433 million, down 22 percent from July 2024;
- natural gas production tax — $178 million, up 8 percent from July 2024;
- hotel occupancy tax — $72 million, down 4 percent from July 2024; and
- alcoholic beverage taxes — $146 million, down 3 percent from July 2024.
