Sales taxes lagging

Local News

December 14, 2009

County collections slip more than 4 percent below state average

Anonymous The Weatherford Democrat Mon Dec 14, 2009, 08:38 AM CST

AUSTIN — According to numbers just released from the Office of Comptroller Susan Combs, Parker County sales tax rebates are tracking significantly behind the state’s average.

Combs said the state collected $1.70 billion in sales tax in November, down 14.4 percent compared to November 2008.

Municipalities in the county took in $940,000 in tax revenue, down more than 18 percent over the same period last year.

Dennis Clayton, executive director of the Weatherford Economic Development Authority said the slip came as a shock.

“Last month we improved a little bit and we were a little surprised,” he said. “Obviously, it’s disappointing, but it’s going to get better. This is October sales, of course, so in a couple of months we can cycle in holiday sales, but it’s a slow recovery.”

Weatherford, Aledo and Willow Park each rang up totals well behind the state’s average.

Falling by more than 21 percent from last year’s numbers, Weatherford took in about $563,000, $147,000 less than December 2008. The city’s $8.01 million is down by 9 percent.

Aledo’s monthly total also tracked more than 20 percent under 2008 with a $28,700 check from the comptroller. For the year, however, Aledo is still nearly 10 percent ahead of 2008.

Willow Park’s $33,000 rebate leaves the town down nearly 29 percent for the month and more than 13 percent year-to-date.

Hudson Oaks, while still trailing 2008 tax revenue, is closer to the state’s average. Hudson Oaks took in $101,000 in revenue for December, about $17,000 below December 2008, reflecting a 14.85 percent trend downward. For the year, Hudson Oaks’ $1.35 million has slumped by almost 7 percent.

Springtown, which began showing signs of the economic downturn late last year, is competing with lower sales tax revenue figures, which has resulted in a jump of more than 18 percent from a year ago. Springtown took in $64,000 in December, $10,000 more than last year. For the year, the city is still trailing 2008 by more than 25 percent.

Combs blamed slipping sales taxes on weakness in key segments of the economy.

“Sales tax collections, declining since February 2009, continued to be weak in November,” Combs said. “Compared to a year ago, sales tax collections were down across all major sectors of the Texas economy, including oil and natural gas production, construction, manufacturing and retail trade.”

The Comptroller sent cities, counties, special purpose districts and transit systems $417.1 million in December sales tax allocations, down 14.6 percent compared to last December. The final sales tax allocation of 2009 brings local sales tax revenue for the year to $5.6 billion, 5.1 percent less than in 2008.

Combs sent Texas cities December sales tax allocations of $279.6 million, down 14.9 percent compared to December 2008. Counties’ December sales tax allocations totaled $24.6 million, down 20.2 percent compared to December 2008.

Ten local transit systems received December sales tax allocations of $96.5 million, a 12.1 percent decline compared to December 2008. December sales tax allocations of $16.3 million went to 163 special purpose taxing districts, a decrease of 15.4 percent compared to last December.

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

For details of December sales tax payments to individual cities, counties, transit systems and special purpose districts, locate the Monthly Sales and Use Tax Allocation Comparison Summary Reports on the Comptroller’s Web site at www.window.state.tx.us/taxinfo/allocsum/compsum.html.

The next local sales tax allocation will be made Friday, Jan. 8.

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