Local sales tax receipts continue to increase

Sales tax receipts for local cities increased again this month, according to information released Friday by Texas Comptroller Carole Keeton Strayhorn.

The Clarendon economy produced a sales tax allocation for December 21.51 percent higher than the same time a year with the city receiving $20,640.18 this month.

The city will close the calendar year having posted significant gains in nine out of the last ten months, and the year-to-date figure now stands at $269,037.02, an increase of more than nine percent.

Likewise, Hedley collected $694.88 this month compared to $317.60 for the same period one year ago. Howardwick received $1,034.18, which up from $850.15 last year. Both cities are also ahead for the year-to-date with Hedley posting a 13.32 percent increase and Howardwick 3.91 percent higher than last year.

November state sales tax collections and December sales tax allocations to local governments mainly represent sales that occurred in October.

Statewide some Southeast Texas communities continue to see declines in their sales tax revenue as a result of Hurricane Rita, but overall state and local sales tax revenues are up. Texas cities received $252.8 million in sales tax allocations, up 15.8 percent compared to December 2004. 

The state collected $1.58 billion in sales tax in November, up 9.4 percent compared to November 2004.  December sales tax allocations to local governments rose by $50.8 million, or 15.8 percent, compared to December 2004.  Sales tax allocations are up 19 percent in 22 counties that were declared disaster areas following Hurricane Rita.

“These sales tax numbers tell the story of Texans’ heroic response to hurricanes Katrina and Rita,” Strayhorn said.  “They show the generosity of Texans who purchased millions of dollars worth of clothing, household goods and emergency supplies for those in need.  And the numbers reflect spending by thousands of evacuees, who were welcomed in cities throughout Texas. 

Only 25 local governments in 22 Southeast Texas disaster counties show declines in their December allocations, compared to 73 local governments whose sales tax revenue dropped in November.  Cities, counties, special taxing districts and a transit system located within the disaster area lost about $271,000 in sales tax in December, compared to losses of $2.3 million in November.

“Some towns continue to lose sales tax revenue because they have businesses that have not been able to reopen,” Strayhorn said.