After the April’s tax day ended, the IRS and other agencies took some time to calculate the revenue. Impressively, the amount of taxes collected was over $2.7 billion which is 13% more than in the same time frame in 2017. Most experts believe that this is due to the growth of the oil and gas industry. This was the main driving factors behind massive tax revenues.
For comparison, the amount of taxes collected in 2017 was substantially lesser with only $2.4 billion in total. The recent revival of the industry helped a lot of local businesses to improve and generate more money meaning that the state received 13% more in taxes.
Note that the industry of oil and gas managed to increase its production by a large margin resulting in a strong 56% growth of industrial revenue. From $285 to $445 million in a span of a year. This is a very good sign for the state economy.
Notably, the revenue of various restaurants and retails shops dropped slightly. Most retailers reported declines in sales, but managed to stay healthy. The recent Dallas Fed’s survey showed that most retailers are not happy with the performance in the second half of 2017.
However, the economy of the state is in a relatively good shape with other sectors such as health care, professional services, legal advice, and entertainment showing steady growth. Sales of various vehicles brought in over $290 million which is more than 32% more compared to the same time span in 2017. Note that some counties take 5% of taxes as commissions meaning that the real number could be even bigger.
Gasoline sales also grew by 2% which is not a big but promising growth. This means that this industry managed to bring in $322 million.
The Overall Situation
Other tax payers also contributed to the tax revenue pool. The IRS noticed that the amount of taxes collected was slightly higher compared to the last year. This can be a consequence of much better performances of various economy sectors. There are several factors that improve the state balance and the financial health of households is one of cornerstones of the state economy.
There are lots of intricacies and complications that can be quite confusing. You can learn more about the Texas tax system, its loopholes, and ways to get returns here at TexasTax.com. Note that the IRS did not account for tax returns that could be a big factor in 2018.
Many experts predict that the next year can be quite impressive in terms of tax revenue. The May of 2018 was the month when many interesting reports were released. One of them from the Texas Government showed that the sales tax revenue was the biggest contributor bringing in over 58% of the total sum. Note that while other forms of taxations accounted for only 42%, the amount of money is still impressive since the overall growth was 10.4% compared to the last year.
The inevitable consequence of this trend is that many people will receive good opportunities to earn more money due to the overall growth of the economy. This means that the share of tax revenue generated by citizens of the state can be much bigger in 2019.