Jacksboro, Bryson see continued growth from sales tax returns

The city of Jacksboro and the city of Bryson will both see an increase in sales tax returns this month from the same period a year prior. These allocations are based on sales made in May by businesses that report tax monthly.

Texas Comptroller Glenn Hegar announced Thursday, July 7 he will send cities, counties, transit systems and special purpose taxing districts $1.03 billion in local sales tax allocations for July, 15.3% more than in July 2021.

Jacksboro’s rebate this month from their 2% rate is $167,118.39, up 68.80% compared to the $99,001.67 rebate received during the same month last year. So far this year, the city’s rebates are up 83.04%, to $1,101,656.67 compared to $601,835.62 received at this time last year.

Bryson’s rebate this month from their 1.5% rate is $6,723.27, up 2.77% compared to the $6,541.44 rebate received during the same month last year. So far this year, the city’s rebates are up 19.40%, to $54,940.75 compared to $46,012.04 received at this time last year.

Jack County collects no county-level sales tax.

June sales taxes

On Friday, July 1, Hegar said state sales tax revenue totaled $3.68 billion in June, 16.4 percent more than in June 2021.

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

As a result of a sustained period of historically high revenues, later this month Hegar will provide an update to the Certification Revenue Estimate published in November 2021. That update will result in a significant increase in estimated revenue available for the 2022- 23 biennium.

“State sales tax collections surged in June, outpacing inflation, with strong growth in receipts from all major economic sectors,” Hegar said.

“The strongest growth was in sectors driven primarily by business spending, with receipts from the mining sector nearly doubling collections from last year, and with receipts from the manufacturing, wholesale trade and construction sectors also up sharply.

“Receipts from restaurants and the services sector were strong once again in June, as consumers continue to spend more on live events with entertainment options becoming available that were not available the last two years.

“While receipts overall from retail trade were strong, receipts from furniture and home furnishings stores, as well as sporting goods and hobby stores, declined from year-ago levels for the third straight month, another indication consumers are switching spending from goods to services.”

Total sales tax revenue for the three months ending in June 2022 was up 12.5% compared to the same period a year ago.

Texas collected $584 million from motor vehicle sales and rental taxes, down 1% from June 2021. Texas collected $323 million from motor fuel taxes, up 3% from June 2021. The state collected $679 million from oil production taxes, the highest monthly collection on record, up 87% from June 2021. The state collected $439 million from natural gas production taxes, the highest monthly collections on record, up 176% from June 2021.

Texas collected $67 million from hotel occupancy taxes, up 24% from June 2021. The state also collected $150 million from alcoholic beverage taxes, up 9% from June 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.