Texas Comptroller Glenn Hegar announced today that state sales tax revenue for February reached $3.8 billion, reflecting a 4.3 percent increase compared to February 2024. Most of the sales tax revenue collected in February is derived from sales made in January, which are then reported to the agency in February.
All four local entities experienced a strong month in sales tax revenue like the State of Texas did. The City of Brownfield saw a significant increase of 28.53% compared to this time last year, generating $212,019.63, up from $164,946.92 in March 2023. Additionally, Brownfield is reporting an increase in year-to-date revenue. Between January 1, 2024, and February 29, 2024, the City brought in $295,674.89, and in the current year-to-date, the revenue is up 19.40%, totaling $353,042.81.
Terry County also returned to positive figures with an 8.20% increase in revenue, totaling $84,346.29 compared to $77,947.18 during the same period last year. For year-to-date figures, Terry County is up by 2.93%, generating $144,008.58 compared to $139,908.85 previously.
The cities of Meadow and Wellman both reported strong monthly performances. Meadow experienced an impressive increase of 42.06%, bringing in $2,840.78 compared to $1,999.70 last year. With this substantial rise, Meadow is now positive for its year-to-date payments, reflecting a 3.16% increase from $4,439.43 to $4,579.74. Meanwhile, the City of Wellman saw a 16.43% increase in revenue, rising from $1,708.36 to $1,989.15 compared to the same time last year. Wellman’s year-to-date revenue increased by 8.43%, from $2,641.55 to $2,864.29.
The Comptroller’s office reported that state sales tax collections showed solid growth in comparison to February 2024. This follows a strong performance in January and exceeds the overall rate of general price inflation. Last month, remittances from sectors primarily influenced by business spending were mixed. Receipts from the construction and wholesale trade sectors were slightly down compared to a year ago, while the manufacturing sector experienced the largest year-over-year increase in two years. Additionally, receipts from the information sector, particularly from computer and data processing services, saw significant growth.
Overall, remittances from the retail trade sector increased slightly compared to the previous year. However, within this sector, receipts from sporting goods, electronics and appliances, and general merchandise stores significantly decreased. On the other hand, collections from home improvement stores showed a substantial increase after a weak performance the previous month.
Restaurant receipts also slightly increased compared to a year ago, although they remained below the rate of inflation for food consumed away from home in January.
For the three months ending in February 2025, total sales tax revenue rose by 4 percent compared to the same period a year earlier. Sales tax constitutes the largest source of state funding for the budget, accounting for 58 percent of all tax collections.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $650 million, up 11 percent from February 2024;
- motor fuel taxes — $310 million, up 2 percent from February 2024;
- oil production tax — $486 million, up 6 percent from February 2024;
- natural gas production tax — $221 million, up 19 percent from February 2024;
- hotel occupancy tax — $57 million, down 2 percent from February 2024; and
- alcoholic beverage taxes — $128 million, down less than 1 percent from February 2024.
