City: Sales tax collection increases in December, still ahead of budget

(Dec. 12, 2024) 

MIDLAND, TEXAS -- The City of Midland reported a year-over-year increase in its sales tax collection in December, according to information released this week by the Texas Comptroller’s Office. 

The City of Midland reported $5,622,504 in sales tax revenue in December -- an increase of 3.10% from December 2023. 

The total in December raised the year-to-date total for FY 2025 to $16,738,045, which is a 1.92% decrease over this point last year but still $623,445 greater than budget.

Sales tax revenue is generated by sales tax income from two months prior to collection; The December collection is based on October sales. The City of Midland collects a full cent of the 8.25% of sales tax inside the city.

 Analysis

Comparing November 2024 YTD (full FY2024) to November 2023 YTD (full FY2023), Retail/Food/Professional&Consulting Services have increased in sales tax contribution.   Wholesale and Manufacturing (predominantly Oil related) saw decreases in sales tax contributions.  Most other industries have stayed relatively flat.

November 2024 YTD Breakdown by Category

36.6% - Retail Trade

16.0% - Manufacturing
9.7% - Hotel & Food Services

9.0% - Wholesale
8.8% - Professional & Other Services
7.9% - Utilities
4.2% - Telecom & Information
3.9% - Construction

3.3% - Finance & Rentals

0.6% - Waste Management

Sales tax report

December 2024: $5,622,504

December 2023: $5,453,632

Increase from FY 2024: 3.10%

FY 2024-25: $16,738,045

FY 2023-24: $17,065,714

Decrease from FY 2024: 1.92%

Notes: The City YTD actuals are over budget by $623,445

MDC

December 2024: $1,405,626

FY 2024-25: $4,184,511