Sales tax revenue declines

AUSTIN – Clarendon’s sales tax allocation dropped more than 11 percent in July, mirroring a dip in state sales tax revenue.

According to information released Friday by Texas Comptroller Susan Combs, the City of Clarendon received an allocation of $21,518.55 this month, which is down 11.89 percent from $24,423.44 for the same period last year.

Overall, the city is almost staying even compared to last year with year-to-date revenue down less than one percent at $170,499.27.

Hedley’s sales tax revenue was also down this month by 14.47 percent to $302.52 and was down for the year-to-date by 17.08 percent to $3,528.92.

Howardwick was the one bright spot in Donley County. That city’s July allocation was up 10.42 percent to $1,300.57, but it was still behind 8.97 percent with a year-to-date figure of $7,096.67.

Statewide, the comptroller announced that the state collected $1.57 billion in sales tax revenue in June, down 11.2 percent compared to June 2008.

“The oil and gas, construction, and retail trade sectors showed continued weakness, resulting in a sharp decrease in sales tax collections in June,” Combs said.
“Contributing to the decrease was not only the weakness in these three sectors, but also the strong level of collections received from them in June 2008.”

Combs sent July sales tax allocations totaling $426.7 million to cities, counties, transit systems, and special purpose taxing districts, down 8.8 percent compared to July 2008.

Combs sent July sales tax allocations of $284.3 million
to Texas cities, down 8.8 percent compared to July 2008. So far this calendar year, city sales tax allocations are down 1.6 percent compared to the same time period last year.

Combs sent $16.6 million to 151 special purpose taxing districts, down 5.5 percent compared to last July. Ten local transit systems received $99.6 million in sales tax allocations, down 8.9 percent compared to a year ago.
State sales tax collections in June and local sales tax allocations in July represent sales that occurred in May.

The Comptroller’s next sales tax allocation will be made on Friday, August 14