City continues to see 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 March by businesses that report tax monthly and sales made in January, February and March by quarterly filers.

Texas Comptroller Glenn Hegar announced Wednesday, May 11 he will send cities, counties, transit systems and special purpose taxing districts $1.2 billion in local sales tax allocations for May, 11.8% more than in May 2021.

Breckenridge’s rebate this month from their 2% rate is $222,803.71, up 5.68% compared to the $210,823.42 rebate received during the same month last year. So far this year, the city’s rebates are up 12.34%, to $929,553.01 compared to $827,382.56 received at this time last year.

Stephens County collects no county-level sales tax.

April sales taxes

On Monday, May 2, Hegar said state sales tax revenue totaled $3.83 billion in April, 12.8% more than in April 2021.

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

“State sales tax collections reached a new high for the month of April, with double-digit growth reflecting both inflation and continued expansion in real economic activity and employment,” Hegar said.

“The strongest growth was in receipts from sectors driven by business spending, particularly the oil and gas mining sector, which surpassed pre-pandemic levels as capital spending in the sector picks up. Receipts from the construction, manufacturing and wholesale trade sectors continued to show double-digit growth.

“Among sectors driven by consumer spending, the strongest growth in receipts was in arts and recreation services, with receipts from sporting events, music and other live entertainment, and fitness clubs far exceeding previous year levels. Receipts from restaurants continued to exhibit double-digit growth as well.

“Receipts from retail trade remain elevated, though only a little higher than a year ago when retail spending surged after the end of COVID restrictions. Slowing growth in receipts from retail trade may signal shifts in consumer spending back toward pre-pandemic patterns. Growth in spending in segments that had benefited during the pandemic appeared to stall, as receipts from home improvement and furniture stores changed little from a year ago, while receipts from sporting goods and hobby stores declined.”

Total sales tax revenue for the three months ending in April 2022 was up 22.3% compared to the same period a year ago.

Texas collected $525 million from motor vehicle sales and rental taxes, up 39% from April 2021. Texas collected $335 million from motor fuel taxes, up 3% from April 2021. The state collected $666 million from oil production taxes, the highest monthly collections on record, up 99% from April 2021. The state collected $339 million from natural gas production taxes, up 46% from April 2021.

Texas collected $76 million from hotel occupancy taxes, the highest monthly collections on record, up 49% from April 2021. The state also collected $152 million from alcoholic beverage taxes, the highest monthly collections on record, up 27% from April 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.