SALES TAX COLLECTION PACES AHEAD OF BUDGET, IN LINE WITH LAST FISCAL YEAR

(Feb. 13, 2025)

MIDLAND, TEXAS -- Sales tax revenue collected inside the City of Midland continues to run in line with the collection from fiscal year 2024. 

The Texas Comptroller reported this week that the City of Midland collected $6.648 million during the month of February – less than a 1% change compared to February 2024. 

While the city is basically even with fiscal year 2023-24 through the first five months of FY 2024-25, the year-to-date total ($28,795,718) is over budget by $1.15 million. 

Sales tax revenue is generated by sales tax income from two months prior to collection; February’s collection is based on December 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 February 2025 Sales Tax revenue (these being December 2024 sales) is predominantly from Retail.  When reviewing Midland County, which saw a $528,000 decrease in Sales Tax revenue in February 2025 from February 2024, their decrease may indicate Oil industry being slower during this period.

February 2025 sales tax (December sales, typically the highest month for Sales Tax) has likely leveled out with greater holiday retail activity taking place earlier in the fall, based on how those months compared to prior years.

Comparing January 2025 to January 2024, Professional & Consulting Services had an increase in sales tax contribution.  Manufacturing (predominantly Oil related) saw a slight decrease in sales tax contributions.  Most other industries have stayed relatively flat.

February 2025 may reflect a similar breakdown to January 2024, where most industries stayed relatively flat.  We continue to remain above the forecasted Budget.

February Sales Tax Collection Report

February 2025: $6,648,465

February 2024: $6,693,674

Decrease from FY 2024: 0.68%

FY 2024-25: $28,795,719

FY 2023-24: $28,921,990

Decrease from FY 2024: 0.44%

Notes: The City YTD actuals are over budget by $1,150,527.

MDC

February 2025: $1,662,116

FY 2024-25: $7,198,929