Breckenridge sees another positive sales tax month
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 August by businesses that report tax monthly.
Texas Comptroller Glenn Hegar announced Wednesday, Oct. 12 he will send cities, counties, transit systems and special purpose districts $1.06 billion in local sales tax allocations for October, 17.4% more than in October 2021. Breckenridge’s rebate this month from their 2% rate is $180,529.55, up 14.62% compared to the $157,492.94 rebate received during the same month last year. So far this year, the city’s rebates are up 12.91%, to $1,871,744.36 compared to $1,657,683.87 received at this time last year.
Stephens County collects no county-level sales tax.
September sales taxes
On Monday, Oct. 3, Hegar said state sales tax revenue totaled $3.69 billion in September, 17.2% more than in September 2021. The majority of September sales tax revenue is based on sales made in August and remitted to the agency in September.
“State sales tax collections continued to climb rapidly in September, with solid growth in receipts from all major economic sectors,” Hegar said.
“Surging receipts from nonretail sectors indicate that the exceptionally strong spending by businesses in recent months continued unabated. Spurred in part by inflation in building materials and other business input prices, the mining, construction, manufacturing and wholesale trade sectors have each exhibited double- digit growth in sales tax remittances for 10 or more consecutive months.
“Receipts from retail trade and restaurants grew moderately and at less than the rate of consumer price inflation, reflecting potentially higher shares of household budgets being allocated to rent, groceries and transportation expenses — items not subject to sales tax — in response to inflation. Receipts from online shopping, building material and home improvement stores, and automotive dealers and parts stores all had double- digit increases compared with last September. But receipts from clothing, electronics and appliance, and furniture and home furnishings stores were little changed, while receipts from general merchandisers and sporting goods and hobby stores were down from a year ago.”
Total sales tax revenue for the three months ending in September 2022 was up 14.9% compared with the same period a year ago.
Texas collected $616 million from motor vehicle sales and rental taxes, up 13% from September 2021. Texas collected $328 million from motor fuel taxes, up 2% from September 2021. The state collected $552 million from oil production taxes, up 41% from September 2021. The state collected $480 million from natural gas production taxes, up 91% from September 2021.
Texas collected $57 million from hotel occupancy taxes, up 11% from September 2021. The state also collected $138 million from alcoholic beverage taxes, up 13% from September 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.
