Texas' sales tax collection grew for the ninth consecutive month in December, reaching $1.8 billion and marking a 9.4 percent increase over the previous year.
As the state struggles to tackle its $15 billion budget shortfall, the improvement is seen as welcomed relief and may even portend improvements for the state economy, as well as for startup businesses seeking to incorporate in Texas.
"There were increases in the oil and natural gas and manufacturing sectors reflecting recovering business spending," said state comptroller Susan Combs in a statement Wednesday. "Sales tax in the retail trade and restaurant sectors were also up ... We forecast growth in sales tax revenue for the current fiscal year as well as the next two fiscal years."
Last year's record-breaking holiday shopping season was likely a driving factor in the sales tax improvements, and with the Super Bowl coming to Dallas next month, Texans are anticipating another hike in consumer activity.
However, sales tax accounts for only 15 to 18 percent of the state's budget, according to the Star Telegram. Accordingly, property values - for which taxes contribute to more than half of the state budget - must improve before truly encouraging budget news can be noted.
Tags : Incorporation News, Taxes, TX
Posted: Jan 13th, 2011