Texas tax revenues during fiscal year 2012, which ended Aug. 31, were considerably higher than the prior year, according to the state comptroller’s office, thanks in part to oil and gas activities in the state.
Taxes collected on natural gas production during the fiscal year were $1.5 billion, a 38% increase from the prior year. Taxes on oil production were $2.1 billion, up nearly 43%, according to the comptroller’s office.
Sales tax revenues have also been climbing as consumers — including the oil and gas industry — spend more. August sales tax revenue was $2.34 billion, an 18.5% increase over August 2011.
“The strong business and consumer spending trend boosted the monthly sales tax revenue, as did money remitted at the close of the state’s tax amnesty which ended in August,” said Comptroller Susan Combs. “The state’s sales tax revenue for fiscal 2012 was $24.1 billion, about 12.6% higher than the previous fiscal year. Collections from business sectors such as the oil and natural gas industry and consumer sectors including retail trade increased sales tax revenue for the fiscal year.”
Overall, Texas tax revenues in the just-ended fiscal year were 13.4% higher than the prior year. The state collected more than $44 billion.
In Texas as in the rest of the country, producers have turned their efforts to growing oil production. In the Lone Star state that has made the Eagle Ford Shale of South Texas and the Permian Basin in West Texas the current hot spots for activity.
According to the Texas Independent Producers and Royalty Owners Association (Tipro), during fiscal 2011, oil and gas companies paid an estimated $4.9 billion in property, sales and franchise taxes, and altogether, the Texas oil and gas industry paid an estimated $9.3 billion in taxes and royalties into state and local treasuries. This equates to nearly $28,000 per employee, more than six times the average paid for the rest of the private sector, according to Tipro.
According to preliminary figures provided by the Railroad Commission of Texas, the state’s June crude oil production averaged 1,285,561 b/d, up from the 968,328 b/d during June 2011. Texas oil and gas wells produced 524,426,369 Mcf (thousand cubic feet) of gas based upon preliminary production figures for June 2012 down from the June 2011 preliminary gas production total of 526,588,019 Mcf. Texas preliminary June total gas production averaged 17,480,879 Mcf/d.
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