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Local sales tax allocations down from last year

By Dawn Burleigh

Sales tax allocations from sales made prior to the coronavirus shutdowns, show a small drop in sales tax revenue.

Texas Comptroller Glenn Hegar announced he will send cities, counties, transit systems and special purpose taxing districts $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.

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 June allocations will likely deteriorate further.

Rose City showed a decrease in both this month’s payments and in the year to date payments compared to last year’s numbers. The city received $17,706.80 in 2019 for the same month and received $13,726.19 this year, a 22.48% less difference.  For year to date in 2019, Rise City received $72,166.67 compared to $65,234.06 in 2020 for year to date, a difference of 9.6% less.

City of Pinehurst also so a decrease in payments when comparing payments for the same period last year with $60,124.53 in 2019 and $49,611.77 showing a 17.48% less difference. However, for year to date, the city showed an increase. Pinehurst received $232,463.02 year to date in 2019 and this year received $242,562.20, a 4.34% increase.

West Orange also had a decrease in this payment in 2020 of $83,370.10 compared to $84,466.97 in 2019, a 1.29% decrease. However, West Orange showed an increase in year to date payments with $400,129.90 in 2020 compared to $391,269.41, a 2.26% increase.

Bridge City saw the largest increase of 15.56% more this month versus 2019 payment. Bridge City also had a 14.76% increase in year to date payments when comparing $609,796.77 year to date in 2020 to $531,345.14 in 2019.

Orange is holding steady with $365,561.10 payments this period in 2020 compared to $361,424.51 in 2019, a 1.14% increase. In year to date payments, the city received 7.07% more in 2020 with $1,714,690.94 compared to $1,601,377.12 year to date in 2019.

Orange County received a 5.84% more with $406,169.12 this month when compared to $383,734.70 in 2019. In year to date payments, the county also showed an increase with $1,878,605.43 in 2020 and $1,723,134.23 in year to date 2019, a 9.02% increase.