State Sales Tax Surges While Terry County Communities See Modest Shifts

by Eric

Acting Texas Comptroller Kelly Hancock today said state sales tax revenue totaled $4.3 billion in December 2025, 5.7 percent more than in December 2024. The majority of December sales tax revenue is based on sales made in November and remitted to the agency in December.

Sales tax revenue for the City of Brownfield and Terry County did not mimic the state’s reports. January shows mostly modest changes across Brownfield and Terry County communities.

The City of Brownfield reported revenue of $140,860.36, a slight 0.11% decrease from $141,023.18 in January of the previous year. Because January is the first month of the year, the year-to-date total matches the monthly figure. Terry County also experienced a small decline in sales tax revenue, dropping from $59,662.29 last January to $59,119.26 this year—a 0.91% decrease. Year-to-date revenue remains unchanged from the January total.

In contrast, the City of Meadow saw a notable increase, reporting $2,333.92 in revenue. That represents a 34.21% increase compared to $1,738.96 during the same period last year. Meadow’s year-to-date revenue is also unchanged from the January figure. Similarly, the City of Wellman experienced growth, with revenue rising from $875.14 to $1,030.02, an increase of 17.69%. As with the other entities, Wellman’s year-to-date revenue reflects the January total.

December state sales tax collections were strong, with year-over-year growth exceeding inflation—signaling continued momentum in the State of Texas economy. Remittances from major sectors tied to consumer spending pointed to a solid start to the Christmas holiday shopping season.

While collections from the mining and construction sectors declined sharply compared to December a year earlier, the manufacturing sector posted moderate growth. Even stronger gains were recorded in the information and wholesale trade sectors. Within wholesale trade, remittances from machinery, equipment, and supplies merchant wholesalers were particularly robust.

Among the major sectors largely driven by consumer spending, both retail trade and service sector receipts increased significantly compared with December 2024. The retail trade sector—the largest contributor to sales tax revenue—rose by more than 5 percent year over year. Electronic shopping receipts surged by double digits for the second consecutive month, fueled in part by Black Friday and Cyber Monday promotional sales following Thanksgiving.

Restaurant-related receipts increased by less than 2 percent from a year ago, trailing the November inflation rate for food consumed away from home.

Overall, total sales tax revenue for the three-month period ending in December 2025 increased 5.2 percent compared with the same period last year. Sales tax remains the state’s largest source of funding, accounting for approximately 58 percent of all state tax collections.

Texas collected the following revenue from other major taxes:

  • motor vehicle sales and rental taxes — $614 million, up 5 percent from December 2024;
  • motor fuel taxes — $324 million, up 4 percent from December 2024;
  • oil production tax — $394 million, down 9 percent from December 2024;
  • natural gas production tax — $169 million, down 21 percent from December 2024;
  • hotel occupancy tax — $61 million, up less than 1 percent from December 2024; and
  • alcoholic beverage taxes — $148 million, down 2 percent from December 2024.

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