Breckenridge sees positive month 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 July by businesses that report tax monthly.

Texas Comptroller Glenn Hegar announced Thursday, Sept. 8 he will send cities, counties, transit systems and special purpose districts $1.04 billion in local sales tax allocations for September, 13.1% more than in September 2021.

Breckenridge’s rebate this month from their 2% rate is $172,551.90, up 8.82% compared to the $158,557.94 rebate received during the same month last year. So far this year, the city’s rebates are up 12.73%, to $1,691,214.81 compared to $1,500,190.93 received at this time last year.

Stephens County collects no county-level sales tax.

August sales taxes

On Thursday, Sept. 1, Hegar said state sales tax revenue totaled $3.77 billion in August, 13% more than in August 2021. The majority of August sales tax revenue is based on sales made in July and remitted to the agency in August.

“The strong growth in August came from receipts remitted by the oil and gas mining sector, which were up by nearly 80% compared with a year ago,” Hegar said. “Receipts from the construction, manufacturing and wholesale trade sectors showed double-digit growth for the ninth consecutive month, demonstrating continued strong spending by businesses in the state.

“Receipts from nearly all segments of the retail sector came in higher than a year ago, with online shopping and sales at grocery stores leading the way. Receipts from restaurants were also up from last year.

“Receipts from the sporting goods and hobby stores and clothing and accessories stores sectors were down slightly from their August 2021 totals.”

Total sales tax revenue for the three months ending in August 2022 was up 14.7% compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 56% of all tax collections.

Texas collected $651 million, the highest monthly collections on record, from motor vehicle sales and rental taxes, up 4% from August 2021. Texas collected $323 million from motor fuel taxes, down 3% from August 2021. The state collected $609 million from oil production taxes, up 50% from August 2021. The state collected $525 million from natural gas production taxes, up 144% from August 2021. Texas collected $69 million from hotel occupancy taxes, up 6% from August 2021. The state also collected $145 million from alcoholic beverage taxes, up 7% from August 2021.

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.

The city of Breckenridge saw another increase in sales tax returns this month and will receive a rebate check in the amount of $172,551.90. This is a 8.82% increase over last year’s rebate of $158,557.94.

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