Published: October 25, 2009 08:55 am      

Sales tax allocations up in Orange County

Texas Comptroller Susan Combs said today the state collected $1.47 billion in sales tax in September, down 12.5 percent compared to a year ago.

“Declining sales tax collections, which began in February, have continued with September’s collections,” Combs said. “Weakness is still evident in all major sectors of the state economy, including oil and natural gas, retail trade, and construction. Decreases in monthly collections are expected to continue through the end of 2009.”

Combs sent local governments $418.5 million in monthly sales tax allocations, a 7.6 percent decrease compared to a year ago. So far this calendar year, local sales tax allocations are down 3.7 percent compared to the same period in 2008.

Combs distributed monthly sales tax allocations of $282.8 million to Texas cities, down 7.3 percent compared to last October. Texas counties received sales tax allocations of $25.5 million, down 10.7 percent compared to a year ago.

The state and local sales tax figures represent sales that occurred in August.

In Orange County, the sales tax allocation is up 16.92 percent from the same time last year, and the total payments received for the year to date is more than 22.6 percent ahead of payments to date in 2008.

Every community in Orange County saw an increase in sales tax allocation payments from the state, and all but West Orange were double-digit increases.

West Orange’s payment was 3.1 percent more in October than it was in October of 2008. The city is nearly 14 percent ahead for the year as well.

The city of Orange received an allocation payment of more than $296,000 in October, which was a 22.73 percent improvement over the October 2008 payment. For the year, the city is nearly 33 percent ahead of 2008 figures.

“The recent sales tax allocation increase for the City of Orange is indicative of this area’s economic capacity to maintain its purchasing power in a difficult national economy,” said Jay Trahan, City of Orange director of economic development. “The increase may also be attributed to residents shopping locally to meet their needs, and from those visiting the Orange community. The local business community is prepared for a productive and positive fourth quarter to close out the calendar year.”

Bridge City received a payment of $88,231.16 from the state comptroller in October, which was 20 percent more than at the same time in 2008. For the year, the city is 17.45 percent ahead of 2008 payments it received.

The city of Vidor received a payment of more than $136,000 in October, compared to only $123,000 in October 2008, which is an increase of 10.27 percent. The city is more than 15.5 percent ahead in year to date payments received compared to 2008 figures.

Although the unemployment level is at approximately 11 percent in Orange County, as of September figures, Bobby Fillyaw, director of the Orange County Economic Development Corporation, said these figures have positive indications.

“Even with the number of people unemployed right now, these numbers show people are shopping locally and that could mean there is a growing confidence in the economy,” Fillyaw explained. “And these numbers are being compared to August 2008 sales figure, which was before Hurricane Ike, and the economy was better then. These are definitely interesting figures with each community showing an increase in sales tax allocations.”

The 153 special purpose taxing districts around the state got $16.7 million in sales tax revenue, a decrease of 1.4 percent compared to a year ago. Ten Texas transit systems received $93.3 million in sales tax, down 8.4 percent compared to a year ago.

The Comptroller’s next local sales tax allocation will be made on Friday, Nov. 6.