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Sales Tax Revenue takes a drop for several cities

By Dawn Burleigh

Texas Comptroller Glenn Hegar announced he will send cities, counties, transit systems and special purpose taxing districts $765.3 million in local sales tax allocations for September, 4.5 percent less than in September 2019. These allocations are based on sales made in July by businesses that report tax monthly.

Rising COVID-19 infection rates in July likely suppressed economic activity, according to Hegar.

While Pine Forest, Rose City, Vidor and West Orange are receiving less this payment than last year’s payment for the same period, Rose City is the only entity that is behind in sales tax revenue for the year to date payments.

Payments distributed on September 14 reflect the month of July as Governor Greg Abbott paused reopening of Texas due to rising COVID numbers at the time.

Rose City shows 30.58% less this month when comparing $18,044.33 in September 2019 compared to $12,524.80 in 2020. Rose City also shows a 23.27% decrease in year to date payments when comparing $177,162.27 in 2019 to $135,922.25 so far in 2020.

The City of Pinehurst saw the highest increase with 53.74% this payment when comparing $38,327.17 in 2019 to $58,924.70 for this payment. This is also reflected in the year to date payments with a 7.43% increase when comparing $501,406.22 in 2019 to $538,664.85 so far in 2020.

City of Orange also received 12.09% more for this period when comparing $390,885.41 in 2019 to $438,145.44 in 2020.

Orange Director of Finance Cheryl Zeto commented, during a recent city council meeting, the increase in sales tax revenue is one way to help keep taxes from going up.

“Shop local really does help,” Zeto said.

For year to date, the city has received 9.63% more in sales tax revenue when comparing $3,857,074.92 in year to date 2019 to $4,228,716.44 in year to date 2020.