The city of Breckenridge will see another increase in sales tax returns this month from the same period a year prior. These allocations are based on sales made in October by businesses that report tax monthly.
Texas Comptroller Glenn Hegar announced Wednesday, Dec. 7 he will send cities, counties, transit systems and special purpose districts $1.1 billion in local sales tax allocations for December, 12.4% more than in December 2021.
Breckenridge’s rebate this month from their 2% rate is $169,037.23, up 0.81% compared to the $167,666.80 rebate received during the same month last year. So far this year, the city’s rebates are up 11.41%, to $2,271,520.75 compared to $2,038,860.25 received at this time last year.
Stephens County collects no county-level sales tax.
November sales taxes
On Thursday, Dec. 1, Hegar said state sales tax revenue totaled $3.96 billion in November, the highest monthly collection on record and 11.2 percent more than in November 2021. The majority of November sales tax revenue is based on sales made in October and remitted to the agency in November.
“With persistently elevated inflation continuing to drive prices — and consequently revenues — higher, November sales tax collections were once again led by growth in non-retail sectors, with mining sector receipts showing the largest percentage increase from a year ago,” Hegar said. “Strong growth in receipts from the construction, manufacturing, wholesale trade and rental and leasing sectors continued in November as well, with each again achieving double digit-percentage gains compared with last year.
“Growth in receipts from the services sector also reached double digits, while those from restaurants grew at about the rate of inflation for food away from home.
“Collections from the retail trade sector grew in November, at about the rate of inflation in consumer goods prices. The fastest growth in collections among retail trade segments continued to be from electronic shopping and automobile and parts dealers, while receipts from electronics and appliance stores and furniture and home furnishing stores declined from a year ago.”
Total sales tax revenue for the three months ending in November 2022 was up 13.3% compared with the same period a year ago.
Texas collected $525 million from motor vehicle sales and rental taxes, up 1% from November 2021. Texas collected $331 million from motor fuel taxes, down 1% from November 2021. The state collected $570 million from oil production taxes, up 19% from November 2021. The state collected $410 million from natural gas production taxes, up 41% from November 2021.
Texas collected $73 million from hotel occupancy taxes, up 24% from November 2021. The state also collected $151 million from alcoholic beverage taxes, up 8% from November 2021.
Sales taxes are the largest source of state funding for the state budget, accounting for 56% of all tax collections, according to the comptroller’s office.
