Dateline: December 25, 2003

Local tax rebates jump 11 percent

AUSTIN – Texas Comptroller Carole Keeton Strayhorn had good holiday news for state businesses when she released November sales tax figures last week.

“State sales tax revenue is up for the third month in a row,” Texas Comptroller Carole Keeton Strayhorn said last week.

The news marks the first time since September 11, 2001, that state sales tax revenue have increased three months in a row.

November sales tax revenue is up 4.3 percent compared to November 2002, which is the largest growth since August 2001. The state received $1.36 billion in sales tax revenue in November.

“This is great news, considering the state had an historic, unfortunate first of two years of declining sales tax revenue in fiscal years 2002 and 2003,” Strayhorn said.

Locally, Clarendon’s sales tax revenue was up 11.37 percent for a total rebate of $18,734.74. Hedley received $343.95, which was down from $659.27 last December. Howardwick’s rebate was $835.67, a decline of more than two percent.

“Last December, the Grinch stole Christmas,” Strayhorn said. “We were seeing declining sales tax revenue at both the state and the local level, and tough economic times were also taking a toll on other revenue sources.

“This year, the Grinch isn’t going to steal Christmas. State sales tax revenue is up, and overall, local taxing entities will receive more sales tax this calendar year than they took in last calendar year.”

Local sales tax revenue is up for the sixth consecutive month, the Comptroller reported as she sent final sales tax allocations for calendar year 2003. Strayhorn sent local sales tax allocations totaling $306.6 million.

Strayhorn sent sales tax payments of $208.9 million to Texas cities, up 6.2 percent compared to December 2002. For calendar year 2003, city sales tax allocations are up 1.9 percent compared to 2002.

State sales tax revenue for November and December sales tax allocations to local governments represent sales made in October and reported to the Comptroller in November.