(The Center Square) – Texas’ general revenue for fiscal 2023 totaled $82.84 billion, an increase of 8.3% from fiscal 2022, according to a new report released by Comptroller Glenn Hegar.
“Fiscal 2023 tax revenues were ahead of our projections in the Biennial Revenue Estimate released in January,” Hegar said in a statement. “Franchise and insurance taxes were particularly strong in fiscal 2023. These taxes are based on the companies’ activity in 2022, and year-over-year increases of 20 and 30 percent, respectively, are results of receipts elevated due to the high price of inflation last year.
“In addition, interest and investment income was up more than 72 percent in comparison with fiscal 2022, thanks to elevated interest rates and large cash balances in the state treasury,” he added.
The Economic Stabilization Fund and State Highway Fund both receive funding from oil and natural gas severance taxes. In November, $3.06 billion will be deposited into each fund for fiscal 2024, Hegar said. The Texas oil and natural gas industry paid $5.93 billion in oil production taxes and $3.35 billion in natural gas production taxes in fiscal 2023, according to the report.
In addition to announcing state revenue for fiscal 2023, the comptroller’s office also released August state sales tax collections. Sales tax revenue remitted in August comes from sales made in July.
Total sales tax revenue for the three months ending in August 2023 was up 5% compared to the same time period a year ago, according to the report. Sales tax is the largest source of state funding for the state budget. It accounts for 57% of all tax collections.
State sales tax revenue totaled $3.98 billion in August, 5.7% more than in August 2022.
“August receipts from the oil and gas mining sector finished the fiscal year as they did every month this year by leading gains in collections among all major sectors,” Hegar said. Texas oil and natural gas companies paid $501 million in oil production taxes and $137 million in natural gas production taxes in August.
“Growth in receipts from the other sectors driven primarily by business spending were more muted, as has been the case in recent months,” he noted. “Remittances from the construction and manufacturing sectors were up slightly compared with last August, while receipts from the wholesale trade sector were negative for the fourth time in five months.
“Remittances from the retail trade sector overall were up from a year ago, but results within the sector were mixed. Online shopping receipts were up by double digits compared with last August, but receipts from building materials stores, electronics and appliance stores, and furniture and home goods stores continued to show weakness as the boom seen during the pandemic in these sectors continues to fade.
“Restaurant receipts were slightly above the inflation rate for food away from home in July.”
Motor vehicle sales and rental taxes totaled $659 million; motor fuel taxes totaled $329 million last month.
Hotel occupancy taxes totaled $70 million; alcoholic beverage taxes totaled $148 million.
This article First appeared in the center square