2 A F I E L D G U I D E T O T H E TA X E S O F T E X A S The data represented in this repor t are avai lable in accessible data form (Excel). Every year, the state of Texas collects billions of dollars in state taxes and fees, federal receipts and other sources of revenue. These funds are used to pay for all of the responsibilities of the state government, including the education of nearly 5.4 million public school students and the provision of health insurance for more than 5 million low-income Texans. This guide provides an overview of the major Texas state taxes. Read on to: • learn how major taxes have contributed to state revenue during the past 10 years; • see on one page revenue collections, estimates and allocations; and • connect to other in-depth resources about state taxes and finances. State Tax Revenue By Source F I S C A L 2 0 2 1 All Funds, Excluding Trusts TOTAL = $61,473,483,316 Texas’ total tax revenue rose by 7.1 percent in fiscal 2021, to $61.5 billion. Most taxes saw growth over the previous year as the economy began to recover from the COVID-19 pandemic. % OF TAXES SALES AND USE TAXES 58.6% $36,019,605,414 MOTOR VEHICLE SALES AND RENTAL TAXES 9.3% $5,730,933,538 MOTOR FUEL TAXES 5.9% $3,596,891,570 FRANCHISE TAX 7.4% $4,529,829,616 OIL PRODUCTION TAX 5.6% $3,449,131,602 INSURANCE TAXES 4.4% $2,699,643,241 CIGARETTE AND TOBACCO TAXES 2.3% $1,397,304,315 NATURAL GAS PRODUCTION TAX 2.6% $1,568,541,762 ALCOHOLIC BEVERAGES TAXES 2.0% $1,257,444,097 HOTEL OCCUPANCY TAX 0.8% $487,815,057 UTILITY TAXES 0.9% $538,814,591 OTHER TAXES 0.3% $197,528,512 Source: Annual Cash Report 2021, Texas Comptroller of Public Accounts Note: Percentages may not sum to 100.0 due to rounding. State tax colle Collections de in 2018 due m taxable spend Some tax cat a collapse in category gre 0% 10% 20% 30% 40% 50% 60% 2012 Where Do While Texas functions of • Texas imp on sales, taxable s amuseme • Texas tax 6.25 perc allowanc 6.25 perc dependin • Texas’ m on the typ and diese • The state of busine banks, lim Of the mi about 14 25 SPRING 2022
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