The Pandemic and Texas State Tax Revenue
Abstract
Government budgets have undergone drastic changes due to the coronavirus pandemic. In this issue, authors Dennis W. Jansen and Andrew J. Rettenmaier share the state of Texas’ tax collections compared to previous years. The role of sales taxes, oil and gas production taxes, hotel occupancy taxes, and alcoholic beverage taxes in filling state or city and county coffers is also discussed. The authors find that total tax collections in the first four months of fiscal year (FY) 2021 were 8.1% below total tax collections for the same months of FY 2020. Sales tax collections, the state’s biggest contributor, were 5.3% lower than the previous year for the same period. The plunge in oil and natural gas prices in FY 2020 led to vast declines in tax collections and in FY 2021 were running at 38% below the same months the previous year. Collections from both the hotel occupancy tax and the alcoholic beverage tax have also suffered substantial declines.
Description
EconomicStudies_AnalysisCollections
Citation
Jansen, Dennis W.; Rettenmaier, Andrew J. (2021). The Pandemic and Texas State Tax Revenue. Private Enterprise Research Center, Texas A&M University; Texas A&M University. Library. Available electronically from https : / /hdl .handle .net /1969 .1 /199239.