State Sales Tax Revenue Totaled $3.8 Billion in May
Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $3.84 billion in May, 4.1 percent more than in May 2022. The majority of May sales tax revenue is based on sales made in April and remitted to the agency in May.
“The rate of sales tax revenue growth continues to moderate, with the increase in May – compared with a year ago – representing the lowest annual rate of increase observed in the 26 months since the end of pandemic restrictions,” Hegar said. “This slower growth is expected and in line with the economic outlook we detailed in our Biennial Revenue Estimate, as both the rate of inflation and growth in real economic activity slow as demand cools in the face of higher interest rate policy and reduced fiscal stimulus from the federal government.
“While receipts from the oil and gas mining sector continued their large year-over-year gains, with remittances once again nearly 50 percent higher than they were the same month last year, growth in receipts from other sectors driven by business spending stalled. Receipts from the construction, manufacturing and wholesale trade sectors barely exceeded year-ago levels.
“Remittances from the retail trade sector were negative in May compared with May last year, making it the second time in three months receipts from retail trade have dipped below year-ago levels. Declines were evident in most subsectors, including building materials and home improvement stores, clothing and accessories stores, electronics and appliance stores, furniture and home goods stores, general merchandisers, and sporting goods and hobby stores.
“Restaurant receipts increased at about the inflation rate for food away from home in April.”
Total sales tax revenue for the three months ending in May 2023 was up 5.6 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 56 percent of all tax collections.
Texas collected the following revenue from other major taxes:
motor vehicle sales and rental taxes — $599 million, down 1 percent from May 2022;
motor fuel taxes — $340 million, up 6 percent from May 2022;
oil production tax — $497 million, down 17 percent from May 2022;
natural gas production tax — $199 million, down 52 percent from May 2022;
hotel occupancy tax — $71 million, up 4 percent from May 2022; and
alcoholic beverage taxes — $156 million, up 2 percent from May 2022.
Fiscal 2023 franchise tax collections totaled $6.22 billion year-to-date through May. Compared with collections through May 2022, year-to-date franchise tax collections were up 20.7 percent, an extraordinary increase driven by boom conditions in 2022 following the pandemic as well as pricing dynamics in the high inflation environment driving corporate revenues up faster than costs.
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.
FLASHBACK FRIDAY - This week we flash back to June 2014
John Gibson talks about the difference between natural gas in the Bakken and Texas.
Gibson is non-executive chairman of the board of ONEOK, ONEOK Partners and ONE Gas. He most recently was chairman and chief executive officer of both ONEOK and ONEOK Partners after serving as chairman, president and chief executive officer of ONEOK and ONEOK Partners.
Gibson joined ONEOK in 2000 as president of energy, responsible for the company’s natural gas gathering and processing, and transportation and storage businesses. In 2006, he was named president and chief operating officer of ONEOK Partners, the master limited partnership that contains the midstream natural gas and natural gas liquids businesses. He was elected chief executive officer of ONEOK and president and chief executive officer of ONEOK Partners in January 2007, becoming chairman of ONEOK Partners later that year. In January 2010, he became president of ONEOK; and in May 2011, he became chairman.
Gibson began his career in the energy industry in 1974 as a refinery engineer with Exxon Company, USA. He spent 18 years with Phillips Petroleum Company in a variety of domestic and international positions in the natural gas, natural gas liquids, and exploration and production businesses. When Gibson left Phillips in 1995, he was vice president of marketing of GPM Gas Corporation, a wholly owned natural gas gathering, processing and marketing subsidiary. Prior to joining ONEOK, Gibson was executive vice president of Koch Energy, Inc., a subsidiary of Koch Industries, responsible for its interstate natural gas pipelines and gathering and processing businesses.
A native of Kansas City, Kansas, Gibson earned an engineering degree in 1974 from the University of Missouri at Rolla, now called Missouri University of Science and Technology. He also is a graduate of the Harvard Business School’s Advanced Management Program.
Click here for Flashback Friday Interview
This is the Century of Natural Gas
The headline above is not designed to make young heads explode, It’s really not. But it might.
Before getting to why that might be, consider why the headline is a credible statement. The evidence is, in total, overwhelming.
Here’s a 2023 headline from an anti-hydrocarbons website: “China, India lead US$534 billion global gas pipeline build out.” The article notes that globally, over 59,000 kilometres of transmission pipeline are under construction and an additional 151,000 kms are proposed (for reference, the earth’s circumference is 40,000 kms).
That’s just the growth, and that’s just the bigger transmission lines. Natural gas pipeline distribution systems are made up of large transmission lines and then smaller distribution systems. I have not been able to find a statistic for the combined length of the total global distribution system, perhaps none exists, but consider the U.S.’s pipeline system characteristics: The U.S. has over 300,000 miles of natural gas transmission lines, and about 2.2 million miles of smaller distribution pipelines – the ones that get gas to customers.
Those numbers, and particularly that ratio, give some examples of the staggering size of the global natural gas infrastructure system. And natural gas is used almost everywhere.
According to a gas infrastructure tracking site, about 130 countries in 2022 either have existing natural gas pipeline systems or have some in development.29dk2902l
Click here for the entire column
Land Commissioner Bans New Oil, Gas Leases Near NM Schools
New Mexico Land Commissioner Stephanie Garcia Richard signed an executive order Thursday that bans new oil and gas leases on state trust land within one mile of a school, a step she said would help protect children’s health.
She also directed her office to review existing leases near schools to assess their compliance with environmental regulations.
The immediate impact of the order isn’t clear. The moratorium, for example, won’t apply to federal, tribal or private lands.
Click here for the entire article
Western Energy Alliance Supports the Debt Ceiling Package
Western Energy Alliance today applauded leaders in Congress and the White House for including reforms to permitting energy and
infrastructure projects within the Fiscal Responsibility Act. The following statement is attributable to Alliance President Kathlee Sgamma:
“Western Energy Alliance enthusiastically supports the debt ceiling agreement. This is a strong first step to getting American energy infrastructure more expeditiously permitted, thereby reducing costs to taxpayers, and easing high energy prices for consumers. The reform to NEPA (National Environmental Policy Act) analysis, which for decades has been a huge stumbling block to getting things built in America, is extremely important for getting the country back on the path of energy dominance.
“NEPA reform is crucial if we have any hope of restoring some sanity to development on federal lands and waters and getting pipelines built. NEPA has been used as a weapon to stop the very pipelines that would enable energy producers to capture more greenhouse gas emissions and even threatens the wind, solar, and carbon capture projects Congress funded in the inaptly named Inflation Reduction Act. We urge Members of Congress to vote for the compromise.”
The Crude Life Daily Radio News & Lifestyle Update
Terry Etam, author of The End of the Fossil Fuel Insanity, writer for the BOE Report and blogger for Public Energy Number One comments on the regulatory environment in Canada as well as the United States.
Terry Etam is a twenty-five-year veteran of Canada’s energy business. He has worked at a number of occupations spanning the finance, accounting, communications, and trading aspects of energy, and has written for several years on his own website Public Energy Number One and the widely-read industry site the BOE Report.
His goal is to kickstart new energy dialogues in a constructive manner as the world faces, and begins to understand, the real challenges of moving away from fossil fuels. In today's welcome but hyper-vigilant state of environmental scrutiny, where natural ecosystems are treasured and measured far more than ever before, any large-scale changes to energy infrastructure will face huge challenges, as any project manager can attest. It will be far, far harder than many imagine to move away from fossil fuels rapidly.
Mr. Etam has been called an industry thought leader and the most influential voice in the oil patch. He lives in Calgary, Alberta with his family and, for some reason, a little dog.
Click here for The End of Fossil Fuel Insanity: Clearing the Air Before Cleaning the Air
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Texas Taxes, ONEOK Flashback, Debt Ceiling, Natural Gas is Booming and Canada's Greatest Export