Breckenridge sees continued growth in sales tax returns

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 April by businesses that report tax monthly.

Texas Comptroller Glenn Hegar announced Wednesday, June 8 he will send cities, counties, transit systems and special purpose taxing districts $1.01 billion in local sales tax allocations for June, 11.6% more than in June 2021.

Breckenridge’s rebate this month from their 2% rate is $185,695.36, up 18.24% compared to the $157,037.05 rebate received during the same month last year. So far this year, the city’s rebates are up 13.28%, to $1,115,248.37 compared to $984,419.61 received at this time last year.

Stephens County collects no county-level sales tax.

May sales taxes

On Wednesday, June 1, Hegar said state sales tax revenue totaled $3.69 billion in May, 8.6% more than in May 2021. Annual revenue growth of 8.6% suggests modest growth in underlying taxable economic activity, in view of the current inflationary environment with Consumer Price Index inflation at 8.3% in April.

The majority of May sales tax revenue is based on sales made in April and remitted to the agency in May.

“Strong, double-digit growth was seen once again in sectors driven primarily by business spending, with receipts from the oil and gas mining sector continuing to exhibit particularly robust growth compared to a year ago,” Hegar said. “Receipts from the construction and wholesale trade sectors also continue to show strong growth.

“Receipts from the services sector posted another substantial gain compared to the same month last year. Spending at sporting events and concerts was especially strong last month as consumers continue to spend more on live entertainment after being restricted during the pandemic. Receipts from restaurants also increased compared to May 2021.

“Increases in these consumer-driven sectors, coupled with a decrease in receipts from the furniture and general merchandise sectors compared to a year ago, may further indicate that sectors that benefited from pandemic spending patterns will face continued headwinds due to a shift in consumer spending patterns from goods to services.”

Total sales tax revenue for the three months ending in May 2022 was up 15.7% compared to the same period a year ago.

Texas collected $603 million from motor vehicle sales and rental taxes, up 9% from May 2021. Texas collected $319 million from motor fuel taxes, up 1% from May 2021. The state collected $595 million from oil production taxes, up 64% from May 2021. The state collected $413 million from natural gas production taxes, the highest monthly collections on record, up 216% from May 2021.

Texas collected $69 million from hotel occupancy taxes, up 44% from May 2021. The state also collected $154 million from alcoholic beverage taxes, the highest monthly collections on record, up 22% from May 2021.

Fiscal 2022 franchise tax collections totaled $5.16 billion year-to-date through May. Last year, the reporting deadline was deferred to June from the usual May 15 due date. Compared to collections through June 2021, year-to-date franchise tax collections were up 21.6%.

Sales taxes are the largest source of state funding for the state budget, accounting for 59% of all tax collections, according to the comptroller’s office.