Comptroller Susan Combs, explaining her biennial revenue estimate in January 2013 (AP Photo/Eric Gay)
Texas has logged the biggest single-month percentage increase in sales tax receipts in nearly two years — 12.9 percent.
Last month’s sales tax revenue was $2.41 billion, up from $2.14 billion in October 2013, Comptroller Susan Combs announced Wednesday.
The last time monthly growth pressed into double-digit territory was November 2012, when collections grew by 13.1 percent.
“Strong growth in sales tax receipts was apparent across all major economic sectors,” said Combs, who leaves office in January.
She said “notable increases from retail trade and the oil and natural gas-related sectors led the growth,” signaling “increased spending by both consumers and businesses.”
For the fiscal year that began Sept. 1, Combs has forecast just 3.3 percent growth in revenue from Texas’ 6-1/4-cent sales tax. (Click here, see Table A-13.) September’s receipts were 7.9 percent higher than a year earlier. So as has frequently happened, her projection is looking very conservative.
The news probably will do little to cool the ardor for tax cuts among incoming GOP lawmakers and leaders such as Lt. Gov.-elect Dan Patrick and Gov.-elect Greg Abbott.
In election day interviews, Patrick pledged “serious property tax relief.” Abbott said more vaguely in his Tuesday night victory speech that he would keep Texas No. 1 in job creation by, among other things, “lowering the tax burden.”
But a host of considerations will complicate their effort, including a low-balling of entitlements such as Medicaid by about $1 billion in the current two-year budget cycle; lawmakers’ continued reliance on budget-balancing tricks, such as hoarding $4.2 billion in fees levied for specific purposes; road needs; and the looming threat of a court decision ordering a costly overhaul of school finance.