Midland reports mixed results in early fiscal year sales tax collections

Community
Webp qbsangqm7iliecwpnh36vr8runtc
Lori Blong Mayor | City of Midland

The City of Midland has reported collecting $11.115 million in sales tax during the first two months of fiscal year 2024-25, which is $137,363 more than city officials had budgeted for this period. The sales tax collection for November was 1.3% higher than anticipated.

The previous fiscal year, 2023-2024, concluded with the city exceeding its budget by $2.098 million. However, recent figures indicate a decline in sales tax revenue for November, amounting to $5,759,272—a decrease of 5.65% compared to November 2023. Both Midland County and the City of Odessa have also experienced decreases in their November collections.

Fiscal Year 2025 is currently showing a 4.78% decrease from the same point last year. It should be noted that sales tax revenue reflects income from two months prior; therefore, the November collection corresponds to September sales. Within Midland city limits, a full cent of the total 8.25% sales tax is collected by the city.

In terms of industry contributions from October 2024 Year-to-Date (YTD) compared to October 2023 YTD, Retail and Professional/Consulting Services saw declines in their contributions to sales tax revenue. Conversely, Wholesale and Manufacturing sectors—primarily oil-related—are experiencing slight increases after lower performance earlier in the year. Most other industries have remained stable.

It is likely that November follows a similar trend as October, with oil-related industries showing minor growth while Retail and Professional/Consulting Services face declines.

The breakdown for October 2024 YTD by category includes:

- Retail Trade: 34.4%

- Manufacturing: 24.5%

- Hotel & Food Services: 9.5%

- Wholesale: 8.7%

- Professional & Other Services: 6.8%

- Telecom & Information: 4.5%

- Construction: 4.1%

- Utilities: 3.4%

- Finance & Rentals: 3.4%

- Waste Management: 0.7%

For further details on sales tax figures:

November's collection amounted to $5,759,272 compared to $6,104,334 in November of the previous year—a decrease of 5.65%. Fiscal Year totals show $11,115,541 collected so far versus $11,612,082 last year—a drop of 4.28%.

As noted by city officials: "The City YTD actuals are over budget by $137,363."

Regarding Midland Development Corporation (MDC), November's collection was reported at $1,439,818 with Fiscal Year totals reaching $2,778,885.