PRESS RELEASE: State Sales Tax Revenue Totaled $4 Billion in May

Texas Comptroller of Public Accounts sent this bulletin at 06/03/2024 03:35 PM CDT

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FOR IMMEDIATE RELEASE

June 3, 2024

State Sales Tax Revenue Totaled $4 Billion in May

(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $4.01 billion in May, 4.5 percent more than in May 2023. The majority of May sales tax revenue is based on sales made in April and remitted to the agency in May.

“Monthly state sales tax collections soundly exceeded collections from last May, contrary to signs of slowing spending in recent months,” Hegar said. “Growth in receipts occurred for almost all major sectors.

“Receipts from the major sectors driven by business spending, with the exception of the mining sector, were up compared with a year ago. Receipts from consumer spending-driven retail trade were up, led by online merchants, while receipts from live entertainment services also grew. Receipts from restaurants grew at slightly below the rate of inflation for food away from home.”

Total sales tax revenue for the three months ending in May 2024 was up 2.2 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 57 percent of all tax collections.

Texas collected the following revenue from other major taxes:

  • motor vehicle sales and rental taxes — $633 million, up 6 percent from May 2023;
  • motor fuel taxes — $325 million, down 4 percent from May 2023;
  • oil production tax — $556 million, up 12 percent from May 2023;
  • natural gas production tax — $180 million, down 9 percent from May 2023;
  • hotel occupancy tax — $71 million, down 1 percent from May 2023; and
  • alcoholic beverage taxes — $152 million, down 3 percent from May 2023.

Fiscal 2024 franchise tax collections totaled $6.38 billion year-to-date through May. Compared with collections through May 2023, year-to-date franchise tax collections were up 2.6 percent, higher than what was projected in the Comptroller’s 2024-25 Certification Revenue Estimate. 

For details on all monthly collections, visit the Comptroller’s Monthly State Revenue Watch. For an extensive history of tax policy developments and fees since 1972, visit our updated Sources of Revenue publication.