The subject of this week’s article is Texas’ state revenue (income)- how much it is and where it comes from. The three sources of revenue are taxes, federal income and non-tax income.
For the upcoming 2021-2022 budget year taxes are estimated to bring in $107.3 billion, 88% of all revenue.
There are twelve categories of taxes, but the top five categories account for 89% of the total revenue. Those five, in decreasing order, are the state sales tax (62%), motor vehicle sales and rental tax (9%), oil production tax (7%), franchise business tax (6%), and insurance premium tax (5%).
Much smaller amounts are generated by such categories as motor fuel tax, cigarette and tobacco tax, natural gas production tax, alcoholic beverage tax, hotel occupancy tax, and utility taxes.
The second largest category is federal income and is expected to be $88.7 billion. The federal income has already been assigned (dedicated) to certain functions. Those functions, in no particular order, are Hurricane Harvey relief, Health and Human Services (Medicaid), highway construction and repair, and public education.
The third category is non-tax income, which is expected to be $54.8 million. There are many small categories included here, but the largest three are fees (vehicle registration and drivers license, for example), fines and penalties.
Thanks for reading.