“April state sales tax collections grew significantly across all major economic sectors,” Hegar said. “While the strongest growth was in remittances from oil and gas-related sectors, tax receipts from retail trade and restaurants also grew briskly.”
Total sales tax revenue for the three months ending in April 2018 was up 9.8 percent compared to the same period a year ago. Sales tax revenue is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.
Revenue from other major taxes on motor vehicle sales and rentals, motor fuel and oil and natural gas production also rose in April 2018:
- motor vehicle sales and rental taxes — $293.2 million, up 32.1 percent from April 2017;*
- motor fuel taxes — $322.6 million, up 2.1 percent from April 2017; and
- oil and natural gas production taxes — $445.2 million, up 56.1 percent from April 2017.
For details on all monthly collections, visit the Comptroller’s Monthly State Revenue Watch.
*Each spring, counties retain as a commission 5 percent of the motor vehicle sales and use taxes collected the previous calendar year by the county. This takes place mostly in April, but in some cases, may continue through May and June. The large increase in year-over-year motor vehicles sales and use tax collections is due to fewer counties retaining that commission in April 2018 than did so in April 2017. Much of that increase is expected to be offset in May.