The City of Midland is experiencing a strong fiscal year in terms of sales tax collection, surpassing both budget expectations and the record pace set during the 2022-23 fiscal year. In March, city officials reported a significant increase in sales tax collection by 13.28%, bringing the total to $5.397 million for that month alone. This boost raises the total collection midway through the fiscal year to $34.192 million, marking a 1.5% increase over the same period in the previous fiscal year.
Currently, Midland's sales tax revenue stands at $1.67 million above what was initially budgeted. The city's revenue from sales tax comes from income generated two months prior to its collection; thus, March's figures reflect January's sales activities.
Part of this year's increase can be attributed to an audit adjustment that favored the city by approximately $300,000. While retail activity typically decreases after the holiday season, suggesting other factors such as contributions from the oil and gas industry might be influencing this rise remains uncertain.
Neighboring Odessa experienced a substantial increase of 19.56% compared to last year during this time, whereas other cities like Lubbock, Amarillo, and San Angelo have seen relatively stable or slightly increased figures.
Although detailed information for March 2025 is not yet available, February comparisons indicate that retail sectors contributed more to sales tax revenues compared to February 2024. However, manufacturing—primarily related to oil—showed a decline in contributions with most other industries remaining stable.