Texas Politics
The State's Income
2004 1978-2004
Texas Revenues by Source, FY2004
Source Amount Percent of Total Percent of Total (Federal Income Omitted) Percent Change from 2003
Tax Income
Sales tax $15,417,156,258 24.8 38.4 8.0
Vehicle sales/rental, mfg housing sales 2,740,287,958 4.4 6.8 1.7
Motor fuels taxes 2,917,706,870 4.7 7.3 2.8
Franchise tax 1,835,013,952 3.0 4.6 6.9
Insurance occupation taxes 1,184,922,211 1.9 3.0 1.4
Natural gas production tax 1,392,436,142 2.2 3.5 30.2
Cigarette and tobacco taxes 534,577,125 0.9 1.3 -8.3
Alcoholic beverages taxes 601,839,505 1.0 1.5 6.0
Oil production tax 496,111,400 0.8 1.2 17.1
Inheritance tax 151,131,249 0.2 0.4 -19.1
Utility taxes 356,245,152 0.6 0.9 8.3
Hotel and motel tax 238,861,664 0.4 0.6 4.8
Other taxes 46,712,161 0.1 0.1 6.4
Total Taxes 27,913,001,645 45.0 69.5 6.8
         
Other Major Income Sources
Federal Income 21,937,677,532 35.3 XXX 4.6
Licenses, fees, permits, fines & penalties 5,545,631,112 8.9 13.8 15.9
Interest and investment Income 1,406,009,264 2.3 3.5 -10.7
Net Lottery Proceeds 1,596,764,098 2.6 4.0 13.6
Sales of Goods and Services 329,233,909 0.5 0.8 -5.1
Settlements of Claims 510,061,810 0.8 1.3 -8.0
Land Income 498,182,215 0.8 1.2 27.8
Contributions to Employee Benefits 178,178,251 0.3 0.4 11.3
Other Revenue Sources 2,158,332,805 3.5 5.4 8.4
Total Other Sources 34,160,070,997 55.0 30.5 6.1
         
Total Net Revenue $62,073,072,643 100.0 100.0 6.5
long description of table

More than one-third of the $62 billion in state revenues in Texas in fiscal 2004 came from federal payments for programs administered by the state such as Medicaid, No Child Left Behind, and Temporary Aid to Needy Families. Another quarter was generated by the state sales tax. Excluding federal funds, of the $40 billion from Texas sources, the sales tax accounted for nearly forty percent. Taxes on sales of motor vehicles and fuel compose an additonal fourteen percent of in-state revenue and revenue from licenses, fees, permits, fines, and penalties has grown to nearly fourteen percent as well.

Source: Texas Comptroller. (full source)