State forecasting declining sales tax

Sales tax revenues dipped slightly across the state when Texas Comptroller Glenn Hegar delivered April local allocations last week.

Statewide, Hegar announced $701.8 million in local sales tax allocations for April, 0.5 percent less than in April 2019. These allocations are based on sales made in February by businesses that report tax monthly.

Clarendon’s allocation fell 1.42 percent to $25,334.25 for April, but the city was still up 3.31 percent for the calendar year-to-date at $128,869.11.

Hedley’s sales tax revenue was down for the month 1.52 percent at $509.78 but was still up 28.63 percent for the year at $3,133.50.

Howardwick’s revenue was up 33.36 percent for April at $1,396.97 and up 33.36 percent for the year-to-date at $5,701.12.

Hegar’s office warned that next month’s allocations, which will mostly reflect sales made in March, will begin to show the impact of pandemic-related business shutdowns. The agency, therefore, expects local allocations in May to be lower and said June allocations will likely deteriorate further.