The state's sales tax revenue was reported to be $2.98 billion in July 2020, 4.3% more than in the same month last year.

The July sales tax revenue data is based on sales made in June. The data is then sent to the agency in July. Texas Comptroller Glenn Hegar revealed that the numbers are due to social distancing requirements being less strict in June than in previous months.

"State sales tax collections in July were better than expected, increasing despite the high unemployment due to the pandemic," Hegar said in a press release. "The increase was due to a surge in collections from the retail trade sector; receipts from other major sectors — including mining, construction, wholesale trade, services and restaurants — showed significant declines."

Hegar said that due to all the working from home, there was more spending on home improvement supplies.

"Collections from e-commerce were up sharply, as many consumers chose to shop online rather than at brick-and-mortar stores," Hegar said. "Also, more online marketplace and remote vendors are required to collect and remit Texas tax following the Wayfair decision and subsequent legislation passed last session. Increased time spent at home both for teleworking and staycations, in lieu of leisure travel, spurred sharply higher spending for home improvements."

Hegar says there was an uptick in revenue from food and beverage deliveries as well.

"Collections from food and beverage stores also were up strongly, as consumers replaced purchases of alcohol from restaurants and bars with alcohol purchased for off-premise consumption (alcohol sales at bars and restaurants are subject to mixed beverage taxes, not sales and use tax)," Hegar said.