Fiscal Notes: November 2016 Page: 3
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IOaXVolotility CONTINUED FROM PAGE 1
EXHIBIT 1-A
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40MOTOR FUELS CIGARETTE & ALCOHOLIC FRANCHISE GENERAL SALES INSURANCE
TAXES TOBACCO TAXES BEVERAGE TAX & TAXES
TAXES USE TAXHOTEL
OCCUPANCY
TAXUTILITY MOTORVEHICLE NATURAL GAS OIL PRODUCTION
TAXES SALES& PRODUCTION &
RENTALTAXES TAX REGULATION TAXSource: Texas Comptroller of Public Accounts
EXHIBIT 1-B
INDEX VALUES OF REL ATIVE ANNUAL VOLATILITY,
FISCAL 1996-2015
SHARE OF SHARE OF
TOTAL TAX NET STATE
TAX INDEX COLLECTIONS, 2015 REVENUE, 2015
Motor Fuels Taxes 2.5 6.7% 3.1%
Cigarette &
Tobacco Taxes 2.9 3.0% 1.4%
Alcoholic Beverage
Taxes 5.7 2.2% 1.0%
Franchise Tax 6.1 9.0% 4.3%
General Sales
& Use Tax 6.8 55.9% 26.4%
Insurance Taxes 7.7 4.0% 1.9%
Hotel Occupancy
Tax 10.1 1.0% 0.5%
Utility Taxes 11.8 0.9% 0.4%
Motor Vehicle Sales
& Rental Taxes 12.0 8.7% 4.1%
Natural Gas
Production Tax 40.1 2.5% 1.2%
Oil Production &
Regulation Taxes 45.9 5.6% 2.6%Source: Texas Comptroller of Public Accounts
emergence of new production technologies, making for
extreme volatility.
Texas' motor fuels taxes are our least volatile major
taxes, with an index value of just 2.5. In the last 20 years
(fiscal 1996-2015), gasoline tax collections correlated
closely with the steady growth of the state's population;
more people equaled more cars on the road. In this
period, the Texas population grew at an average annual
rate of 1.9 percent, while gasoline tax revenues rose by
1.6 percent annually.
Alcoholic beverage taxes, with a 5.7 index, are
affected by several factors. Alcoholic beverage excise
taxes levied on wholesalers are driven largely by
population growth, but consumer preference plays a
role as well. Consumers have begun shifting away from
traditional, mass-produced beers and toward craft ales
and beers (often with greater alcohol content, and thus
classified as malt liquors for tax purposes) as well as
wine and spirits. Collections of the various excise taxes
are reflecting this shift. Changes in mixed beverage tax
collections, by contrast, largely follow personal income.
The sales tax, our largest source of tax revenue,
is moderately volatile, with an index of 6.8. It has a
strong relationship with nominal (that is, unadjusted for
inflation) gross state product and with personal income.
These are considered the most comprehensive measures
CONTINUED ON PAGE 4FISCAL NOTES, NOVEMBER 2016 3
INDEX VALUES OF RELATIVE ANNUAL VOLATILITY, FISCAL 1996-2015
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Texas. Comptroller's Office. Fiscal Notes: November 2016, periodical, November 2016; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1577968/m1/3/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.