CITY OF MIDLAND STARTS SALES TAX YEAR ABOVE BUDGET

(Oct. 10, 2024) 

MIDLAND, TEXAS -- The City of Midland will start the Fiscal Year 2025 with a sales tax collection 1.2% above budget. 

The City reported this week that the October collection reached $5.36 million, which was over budget by $66,007. The total also is a 2.75% decrease compared to October 2023. 

The City of Midland is coming off posting the second-largest collection in history during FY 2024.  

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

--

Analysis

Comparing September 2024 YTD (full FY2024) to September 2023 YTD (full FY2023), Wholesale and Manufacturing saw large decreases in sales tax contribution, both of these being predominantly oil related industries. All other industries (especially Retail, Hotel/Food Service and Construction) saw increases in sales tax contributions in excess of inflation.  Inflation has been 3-4% for FY2024, while these industries saw an increase of 5.4% in sales tax payments.  

September 2024 YTD Breakdown by Category:

37.0% - Retail Trade

21.1% - Manufacturing

9.4% - Professional & Other Services

9.3% - Hotel & Food Services

7.7% - Wholesale

4.3% - Construction

4.1% - Telecom & Information

4.0% - Utilities

2.6% - Finance & Rentals

0.7% - Waste Management

Sales tax report

October 2024: $5,356,269

October 2023: $5,507,748

Decrease from FY 2024: 2.75%

Notes: First month of the fiscal year. … The City YTD actuals are over budget by $66,007

MDC

October 2024: $1,339,067