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TX Sales Tax Revenues Post Double-Digit Drop in May
State sales tax revenue totaled $2.61 billion in May, reflecting the impact that social distancing requirements made on the state’s economy during April, Texas Comptroller Glenn Hegar said Monday. The total was 13.2% less than in May 2019, and the steepest year-over-year decline since January 2010.
While oil and gas mining took the biggest hit, “The business closures and restrictions and stay-at-home orders due to the COVID-19 pandemic spurred deep drops in collections from restaurants, amusement and recreation services, and physical retail stores,” Hegar said.
The declines were offset in part by increases from big-box retailers and grocery stores that remained open as essential businesses, online retailers and restaurants that could readily pivot to takeout and delivery service.
Hegar said business activity in sectors most affected by measures to curb the COVID-19 pandemic should slowly recover, but the impact on sales tax collections will be felt “for months to come.”
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- ◦Economy
