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July 10, 2018

Permian Basin oil money boosts West Texas economy

The Permian Basin is pumping a lot of money into West Texas. The Midland-Odessa Transportation Alliance reports that in 2017, the Basin accounted for $62.69 billion in gross sales and $21.05 billion in sales subject to sales tax.

The information also shows that in 2017, the Permian Basin produced more than $4.35 billion for the state of Texas in sales and severance taxes and Permanent University and School funds alone. That’s up more than $600 million annual from 2011.

There was also $153.2 billion worth of market value ad valorem property and $125.3 billion in taxable value ad valorem property. It generated $548 million in county revenue from ad valorem revenues, an increase of $84 million since 2011.

Other economic impact showed that the Permian Basin:

–generated $1.263 billion sales tax for the state (does not include locally generated sale tax amounts);

–generated $1.627 billion in severance tax for the state (this amount accounts for nearly 75 percent of all severance taxes collected);

–generated $747.6 million for Permanent University Fund (this amount accounts for 100 percent of University Lands/PUF fund revenues); and

–generated $673.09 million for the Permanent School Fund.

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