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SALES AND USE TAX COLLECTIONS

Sales and use taxes in the 122 Houston-area cities that collect them totaled $1.68 billion during the first ten months of ’24, up 1.8 percent from the $1.65 billion received over the comparable period in ’23. Adjusted for inflation, however, collections are down 0.8 percent.

These collections, which cover the purchases of both consumers and businesses, are a proxy for broad economic activity in the region. Adjusting for inflation, the decrease suggests continuing weakness in the local economy. 

Among the 24 cities in the metro area that collected $10 million or more in taxes through October of this year, activity is up five percent or more in nine cities, flat in nine, and down in six (including Houston proper), before adjusting for inflation. These 24 cities accounted for 90.4 percent of all sales tax collections during that time. 

The Houston Region lagged behind Dallas-Fort Worth, San Antonio and the state overall, while surpassing Austin, in percentage change in year-to-date sales tax collections. Adjusted for inflation, collections fell in the state and all four regions.

The Texas Comptroller of Public Accounts releases allocated payments from the sales and use tax monthly. There is a two-month delay between when the tax is collected and when it is allocated. Data for January through November will be released in January. 

Prepared by The Greater Houston Partnership Research Division

Patrick Jankowski
Chief Economist
Senior Vice President, Research
[email protected]

Colin Baker
Manager of Economic Research
[email protected]