Texas Tax Haul Soars By Record 26% in 2022 Fiscal Year

Texas Tax Haul Soars By Record 26% in 2022 Fiscal Year

The Texas government just closed out its 2022 fiscal year with a bang. On Thursday, the state comptroller reported that the Lone Star State’s tax revenue rocketed by 25.6% to a total of $75.21 billion.

It’s only the fifth time since 1988 that revenue grew by a double-digit percentage — and it’s double the next largest increase over that 34-year span.  

“Revenues continue to outpace even our most recent forecast as All Funds tax collections closed the fiscal year $841 million above the projection in our Certification Revenue Estimate,” said state Comptroller Glenn Hegar in an official release

That’s a stark contrast to California, which saw July revenue come in 12% below forecast.

Texas has been a major beneficiary of migration from California: Over the last census cycle, 34% of new Texans arrived from California alone. Meanwhile, New York saw personal income tax collection fall 3.2% from April 1 through July.  

Economic growth and inflation have driven higher sales tax collections as demand remains strong and businesses and consumers continue to pay elevated prices for goods,” said Hegar.

Gains in petroleum revenue led the way: Natural gas production tax revenue rocketed 185% to $4.5 billion, while oil production tax revenue grew a whopping 84% to $6.4 billion. 

However, the broader revenue picture was rosy too:

Sales tax revenue rose 19.3% to $43 billion

Motor vehicle sales and rental tax revenue was up 12.5% to $6.45 billion

Franchise tax revenue leapt 25.2% to $5.67 billion

The sales tax is the state’s largest source of funding, representing 56% of all tax collections. It’s imposed at a rate of 6.25%; combined with local sales taxes, the total at the register can be as high as 8.25%.

Texas is one of only seven states with no personal income tax — along with Alaska, Florida, Nevada, South Dakota, Wyoming and Washington.  

Tyler Durden
Sat, 09/03/2022 – 21:00

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