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Unprecedented sales tax continues to fuel the growth of Midland and Odessa

Local sales tax collection is more than Amarillo, Lubbock, Abilene, and San Angelo...COMBINED
Credit: Motran

MIDLAND, Texas — Midland and Ector Counties continued a pattern of dominance in their impact to the state’s economy.  From 2017 to 2018, state sales tax collections in the two counties grew from $664.2 million to $903.5 million or an increase of $239.4 million.

Statewide sales tax collections grew by 8% over that same period, as opposed to the 36% increase in Midland and Ector Counties.

The two counties accounted for 11.6% of statewide sale tax collection growth, despite accounting for just over 1% of the state’s population.

MOTRAN President James Beauchamp noted that in 2017 to demonstrate the amount of impact to the state, Midland and Ector County state generated sales taxes was equal to Amarillo, Lubbock, Abilene, and San Angelo, combined plus another $200 million.  “For 2018, it was all those same places plus $280 million.  Midland generated $54 million more state sales tax than El Paso and Odessa generated $75 million more than Lubbock.”

Beauchamp added that the period of 2017 to 2018 saw tremendous growth in the two counties.  Over the course of a single year, these two counties accounted for: 
6% of all statewide employment growth
7% of all statewide labor growth
27% of the increase in registered vehicles
12% of the increase in state severance taxes

"A lot of people in Austin talk about the Texas Miracle, but it’s really the Permian Miracle and it’s epicenter is right here in Midland-Odessa.”

Other notable increases by counties in the Odessa District included an $8 million increase in state sales tax collections in both Ward and Winkler Counties, a $12 million increase in Pecos County, and a $15 million increase in Reeves County.

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