Analysis, Volume 14, Number 6, June 1993 Page: 2
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1992 State Tax Revenue Increased $1.1 Billion -- 6.7%
The 1992 state tax take topped $17.1 billion --
an increase of $1.1 billion, or 6.7% over the 1991
level. Four tax sources accounted for that growth:
Corporate taxes increased $499 million (81%)
almost all from the revision of the franchise tax to
include an income element in the tax base.
Motor fuels taxes added an additional $444
million (up 29%) as 1992 was the first full year that
included the gasoline and diesel fuel increase from
15 to 20 cents per gallon enacted in 1991.
Motor vehicle sales taxes were up $147 million
(13.7%), reflecting the tax rate increase from 6 to
6.25% in September 1992.
General sales tax revenue was up 3.6% - $296
million - all from a continued growth in retail sales.
The big downer in the tax picture was the $342
million decrease in revenues from oil and natural gas
production -- each down about 25%. Oil severance
taxes were impacted by returns to lower prices and
production in the aftermath of the1991 Iran crisis.
Natural gas revenues go up and down from year to
year because of a state tax quirk that takes in 13
months of revenue in odd-numbered years, but 11
months of collections in even-numbered years.
What is a Tax?
The Census Bureau defines taxes as
"compulsory contributions exacted by a
government for public purposes." The figures
used in this article follow the Census definition
to facilitate the comparison with other states.
The state comptroller's annual report tends to
rely on whether or not the charge was statutorily
designated as a "tax." Consequently, avariety of
licenses and fees (motor vehicle licenses, for
example) are not counted as taxes by the
comptroller. The comptroller reported $15.8
billion in 1992 state tax revenue, a 6.2% ($927
million)increase over 1991.
TRL ANALYSIS June 1993TAX PATTERNS
Sales taxes are the state's big money raiser, and
that revenue source has grown in importance. In 1992,
sales taxes accounted for 57% of revenues contrasted
to 44% ten years earlier (see pie charts on page 3). The
sales tax rate was 4% in 1982, and 6.25% in 1992.
The 20 cent per gallon motor fuels tax is the
number two state tax raiser. The $2 billion collected
from this source in 1992 accounted for 11.4% of 1992
taxes. Comparable figures for 1982 were $496
million, and 5.5% of the total. In 1982, gasoline was
taxed at 5 cents per gallon, and diesel at 6.5 cents per
gallon.
Direct corporate taxes (mostly franchise)replaced
oil and gas production taxes as number three on the
tax list in 1992. This source accounted for 6.5% of
1992 state tax revenue,up from 5.5% a decade earlier.
Oil and gas production taxes continued to slide in
importance as a state revenue source. In 1982, this
source amounted to 26% of all taxes; in 1992, 5.9%.
"Sin" taxes (alcohol and cigarette/tobacco
products) and motor vehicle licenses and fees (5th and
6th among 1992tax sources)provided5.8%and4.0%
respectively of total 1992 taxes. Comparable levels a
decade ago, at lower tax rates, were 6.9% and 3.5%.
Texas State Tax Revenue
Millions of $ Thousands of $
20 2,500
'Total Taxes
2AnnuaI Chonge ,0
15
1,500
10 1000
100
5
00
1976 78 80 82 84 86 88 90 1992500
2
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Texas Research League. Analysis, Volume 14, Number 6, June 1993, periodical, June 1993; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1543467/m1/2/: accessed June 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.