Texas Sales Tax Revenues Drop In May
TEXAS SALES TAX REVENUE --The Texas Comptroller’s office reports that sales tax revenues for May fell more than 13 percent compared to the same time last year. That's on top of April's 9.2 percent drop and is the steepest decline since 2010. Glen Hegar who serves as Texas Comptroller of Public Accounts says shuttered businesses and stay-at-home orders due to the COVID-19 pandemic increased losses in every sector except for telecommunications services.
"Unfortunately, with significant reductions in employment, income has obviously decreased," Heger explained. "We do think that sales tax revenues are going to be negative in the upcoming months as well."
Hegar says some declines were offset by gains from big box retailers and grocery stores that remained open as essential businesses.
Sales tax revenues, which are mostly based on commerce from the month before, fund more than half of the Lone Star state’s budget.