For the first time in 5 years, Texas sales tax revenue has declined. Texas Comptroller Glenn Hegar thinks that it is a mere dip and does not presage a continuing drop. Matthew Waller of the Corpus Christi Caller-Times has more.
Glenn Hegar announced he was distributing $610 million in monthly sales taxes, which year over year is a 1.2 percent increase.
However, Texas’ chief financial office said that state sales revenue in June was $2.2 billion, a 1.4 percent decrease compared to June of last year.
“This slight decline was expected due to the slowdown in the oil and gas mining sector, and is in line with the biennial revenue estimate presented in January,” Hegar said in a release. “Receipts from the construction, information, restaurant and services sectors continued to grow, however, which is a testament to Texas’ diverse and dynamic economy.”
Vance Ginn, an economist with the free-market Austin think tank called the Texas Public Policy Foundation, said this isn’t an indictment against the “Texas Model,” reasonable regulations, low taxes, low government spending, not conducive to frivolous lawsuits, and so on.
“Part of that (decline) is just going to be the natural slowdown,” Ginn said. “A lot of this was already forecast, budgeted in.”
The incident is “more of a short-term blip,” he said. “We definitely had slower job creation from the drop of the oil price.”