AUSTIN — Texas collected $4.3 billion in state sales tax revenue in December, a 5.7% increase compared with the same month a year earlier, Acting Texas Comptroller Kelly Hancock said Monday, Jan. 5.
Most of the revenue reported for December was based on sales made in November and remitted to the state in December.
“December state sales tax collections were robust, with growth compared to a year ago outpacing inflation — evidence of continued strength in the Texas economy,” Hancock said. “Remittances from the major sectors influenced mainly by consumer spending indicated a strong start to the Christmas holiday shopping season.”
Collections from the mining and construction sectors declined sharply compared with December a year earlier, while receipts from the manufacturing sector grew moderately. The information and wholesale trade sectors posted strong yearover- year gains, with machinery, equipment and supplies merchant wholesalers performing particularly well, according to the comptroller’s office.
Among consumer-driven sectors, both retail trade and services showed solid growth. Retail trade, the largest sector, rose more than 5% compared with December a year ago. Receipts from electronic shopping increased by double digits for the second consecutive month, driven in part by Black Friday and Cyber Monday promotions following Thanksgiving.
Restaurant-related receipts increased by less than 2% from a year earlier, below the rate of inflation for food away from home in November.
Total sales tax revenue for the three months ending in December was up 5.2% compared with the same period a year earlier. Sales tax remains the state’s largest source of revenue, accounting for 58% of all tax collections.
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