SALES TAX COLLECTION NOW ON RECORD PACE, $1.6 MILLION OVER BUDGET
(March 13, 2025)
MIDLAND, TEXAS -- A banner sales tax collection in March has the City of Midland ahead of budget after the first six months of the fiscal year and ahead of the record pace of 2022-23.
City officials reported the sales tax collection was up by 13.28% in March. The $5.397 million raised the collection midway through the fiscal year to $34.192 million – a 1.5% increase over the first six months of fiscal year 2023-24. The amount is also ahead of the pace set during a record year in 2022-23 ($34,059,617).
The City of Midland’s sales tax collection thus far is also $1.67 million higher than the amount budgeted.
Sales tax revenue is generated by sales tax income from two months prior to collection; March’s collection is based on January sales. The City of Midland collects a full cent of the 8.25% of sales tax inside the City of Midland.
Analysis
March 2025 Sales Tax revenue (these being January 2025 sales) increase from March 2024 is partially due to an audit adjustment of approximately of $300,000 in the City's favor. The cause of the remainder of the increase is uncertain, but Retail is assumed to have gone down following the holidays, so it is likely Oil & Gas Industry related. Odessa saw a large increase of 19.56% from this time last year, while cities such as Lubbock, Amarillo and San Angelo stayed relatively flat or had slight increases.
March 2025 detail is not available yet. The information below is for February 2025 detail:
Comparing February 2025 to February 2024, Retail had an increase in sales tax contribution. Manufacturing (predominantly Oil related) saw a decrease in sales tax contributions. Most other industries have stayed relatively flat.
March Sales Tax Collection Report
March 2025: $5,397,229
March 2024: $4,764,581
Increase from FY 2024: 13.28%
FY 2024-25: $34,192,948
FY 2023-24: $33,686,571
Increase from FY 2024: 1.5%
Notes: The City YTD actuals are over budget by $1,670,712.
MDC
March 2025: $1,349,307
FY 2024-25: $8,548,237