SALES TAX COLLECTION AGAIN INCREASES, ABOVE BUDGET

(Jan. 8, 2025)

MIDLAND, TEXAS -- The City of Midland benefited from a sales tax collection increase in January, according to numbers released this week by the Texas Comptroller. 

The City of Midland collected $5.409 million during the month of January – a 4.7% increase compared to January 2024. 

While the city is basically even with fiscal year 2023-24 through the first four months of this FY 2024-25, the year-to-date total ($22,147,254) is over budget by $1,069,863. 

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

Analysis

It is safe to assume that January 2025 Sales Tax increase (these being November 2024 sales) is predominantly from Retail, with "Black Friday"/Holiday sales being active as early as October for many major retailers this year. Several mid- to large-sized Texas cities, ranging from Odessa to El Paso to Dallas, also saw increases in January 2025 sales tax from January 2024, just like December 2024.

This could indicate that February 2025 sales tax (December sales, typically the highest month for sales tax) will end up leveling out, if most Holiday retail activity took place early.

January 2025 detail is not available yet. The below information is for December 2024 detail.

Comparing December 2024 to December 2023, Retail/Food/Professional & Consulting Services have increased in sales tax contribution. Manufacturing (predominantly Oil related) saw a decrease in sales tax contributions. Most other industries have stayed relatively flat.

Retail Trade 37.7%

Manufacturing 21.3%

Wholesale & Related 8.8%

Hotels & Food Svcs 8.8%

Professional & Other Svcs 8.3%

Telecom & Information 4.3%

Construction 4.0%

Finance & Rentals 3.1%

Utilities 3.0%

Waste Management 0.7%

January Sales Tax Collection Report

City of Midland

January 2025: $5,409,208

January 2024: $5,162,600

Increase from FY 2024: 4.78%

FY 2024-25: $22,147,254

FY 2023-24: $22,228,314

Decrease from FY 2024: 0.36%

Notes: The City YTD actuals are over budget by $1,069,863

MDC

January 2025: $1,352,302

FY 2024-25: $5,536,813