Dateline: August 26, 2004

Local sales tax rebates fall in July

AUSTIN – Texas Comptroller Carole Keeton Strayhorn this month said the state collected $1.27 billion in sales tax revenue in July, up 9.6 percent compared to July 2003; but local returns are mixed.

“State sales tax collections have risen for 11 consecutive months,” Strayhorn said. “After seeing sales tax revenue decline for an unprecedented two consecutive fiscal years in 2002 and 2003, I am looking forward to closing the books on fiscal year 2004 at the end of August with a solid gain in sales tax.

“Our state’s economy has finally rebounded after the sharp decline that began in the third quarter of 2001,” Strayhorn said. “My Texas Index of Leading Economic Indicators points to additional economic acceleration in the coming months. One component of the index, Consumer Confidence, jumped 52.5 percent in March and by 35.4 percent in July, compared to the prior year.”

Many local governments will see increases in their August sales tax allocations, but the cities of Clarendon and Howardwick aren’t among them.

Clarendon’s rebate was down more than 11 percent to $25,185.64; and Howardwick fell 0.68 percent to $1,052.21.

The City of Hedley’s rebate was up slightly by about two percent to $537.18.

Statewide, Strayhorn sent sales tax payments of $291.9 million to Texas cities, up 10.8 percent compared to last August.

July state sales tax revenue and August allocations to local governments represent sales taxes collected in June by businesses that report sales taxes monthly and sales taxes collected in April, May, and June by quarterly filers.