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State sales tax revenue totaled $3.2 billion in June

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(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $3.16 billion in June, 18.1 percent more than in June 2020. Year-over-year increases for most tax revenues this month were affected by base effects: Year-ago revenue collections to which this year’s collections are compared were severely suppressed by the pandemic. Compared to June 2019, sales tax collections were up 10.4 percent.

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

“Monthly state sales tax collections remained exceptionally strong, with receipts from all major sectors other than those related to oil and gas surpassing pre-pandemic levels,” Hegar said. “Elevated spending at clothing stores, electronics and appliance stores, sporting goods stores, building materials and home furnishing stores, some general merchandisers and online retailers continued, though growth in online sales and at big box merchandisers slowed as consumers returned to other physical retail alternatives. Remittances from food and beverage stores were constrained by declining sales of alcoholic beverages for off-premise consumption, as consumers returned to restaurants and bars.

“Collections from electric utilities were up strongly, reflecting air-conditioning usage at shopping centers and office buildings that were subject to closure a year ago. Receipts from the manufacturing and wholesale trade sectors also were up substantially, reflecting continued strong demand for computer products and building materials. Receipts from the information sector remained below last year’s levels, due to the federal preemption of state taxation of internet access services.

“Receipts from restaurants again substantially surpassed pre-pandemic levels, with brisk business continuing at take-out-oriented establishments and modest recovery at some dine-in outlets. However, some dine-in restaurant chains continue to operate at lower levels due to permanent closures at some locations.”

Total sales tax revenue for the three months ending in June 2021 was up 26.4 percent compared to the same period a year ago and 14.1 percent compared to 2019. Sales tax is the largest source of state funding for the state budget, accounting for 59 percent of all tax collections. 

Texas collected the following revenue from other major taxes, all of which were up sharply from a year ago due to base effects:

  • motor vehicle sales and rental taxes — $591 million, a record monthly amount; up 50 percent from June 2020, and up 39 percent from June 2019;
  • motor fuel taxes — $315 million, up 26 percent from June 2020, and down 4 percent from June 2019;
  • oil production tax — $363 million, up 339 percent from June 2020, and down 0.1 percent from June 2019;
  • natural gas production tax — $159 million, up 689 percent from June 2020, and up 28 percent from June 2019;
  • hotel occupancy tax — $54 million, up 137 percent from June 2020, and down 7 percent from June 2019; and
  • alcoholic beverage taxes — $138 million, a record monthly amount; up 112 percent from June 2020, and up 12 percent from June 2019.

Fiscal 2021 franchise tax collections, the reporting deadline for which was deferred to June from the usual May 15 due date, totaled $4.24 billion year-to-date through June. Last year, the due date was deferred to July. Compared to collections through July 2020, year-to-date franchise tax collections were up 1.7 percent.

For details on all monthly collections, visit the Comptroller’s Monthly State Revenue Watch. For an extensive history of tax policy developments and fees since 1972, visit our updated Sources of Revenue publication.

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Lake Amon Carter Water Supply Corporation challenged for its service denial and not following open meeting laws

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By BARBARA GREEN
editor@bowienewsonline.com
It was a contentious meeting for the Amon Carter Lake Water Supply District on April 17 as a developer asked why he could not obtain water for his property and why he was not allowed to attend board meetings to make his request.
This was called the annual shareholders meeting and the posting noted they would be discussing rates, new developments, state of the company and any other topics. About 22 people were in attendance including all the board members and two secretaries.
Chairman John Halbrook welcomed the group and invited all the board members to introduce themselves. Ross Hamilton, who maintains the system for the corporation, gave a brief history of the group that began in 1995 as it purchases treated water from the City of Bowie. The system has 10.5 to 11 miles of line ranging from two, four and six inch lines. A concrete cylinder pipe sends treated water to the corporation system on a gravity feed system.
“It has run pretty good 30 years despite a few problems during those years. Most of our problems come when a customer hits a line,” Hamilton.
It was noted by Halbrook service disruptions usually come from the city-side and every time there is a break the system has to pay for up to 20,000 gallons of water to flush the system, which is costly.
An audience member said he understood the corporation had to spread out its last payments for water to flush a line over several months. No response was made.
While this was meeting on many topics, the opening question came from Daniel Deweber who has been battling to get water service to a 28-home development that is within the corporation service area. Deweber said he has been denied multiple times and has been unable to set up a meeting with the board or attend one their meetings.

Read the full story in the Thursday Bowie News.

Top photo – John Halbrook, chairman of the Lake Amon Carter Water Supply Corporation, opened the meeting. (Photo by Barbara Green)

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Bowie City Council approves water rate increase

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After months of debate over water rate increases in the City of Bowie, the city council Tuesday night finally approved the second reading with the rates set to go into effect immediately.
While the ordinance passed last month, it failed on its second reading earlier this month, but Mayor Gaylynn Burris vetoed it bringing it back for further consideration. At that April 8 meeting two council members voted no on the second reading after previously voting yes.
It was agreed no one on the council wanted to see rates increase, but with escalating operational costs as well as mandated improvements to the water plant additional revenue will be necessary. It also will help stabilize the water department budget which has been incurring a large deficit in the last six months due to higher costs for chemicals and related items.
The city also is facing a mandate from the Texas Commission on Environmental Quality to install a new pump at the raw water pump station, expected to run close to $1 million. The city has been trying to get a variance to allow more time, but the TCEQ has not been forthcoming with that.
Councilor Brent Shaw reluctantly made the motion.
“I have looked at the things we have to do and the town we all want this to be, I don’t see another route. We have to charge more to cover the things we are being charged to do,” said Shaw as he moved to accept the rates.
Donna Ashley made the second and the motion passed with Councilor Brandon Walker continuing his no vote.

Read about all the rates in the Thursday Bowie News.

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Big truck rolls over near precinct barn

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Bowie emergency personnel have been working this one-vehicle semi-truck rollover on State Highway 59 in front of the precinct two barn. No details were available at this time. (Photo by Barbara Green)

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