Dateline: December 2, 2004

Sales tax rebates rise across Lone Star State

By Roger Estlack, Clarendon Enterprise

Texas Comptroller Carole Keeton Strayhorn said this month that state sales tax collections rose in October by 8 percent compared to October 2003.

The state’s October sales tax revenue was $1.29 billion. Strayhorn sent $417.8 million in November sales tax rebates to cities, counties, transit systems, and special purpose taxing districts, up 6.2 percent compared to November 2003.

“Sales tax collections continue to grow as this economic bumper crop of a year enters the crucial fourth quarter for Texas businesses and the holiday shopping season,” Strayhorn said.

Locally, however, the three Donley County cities saw declines in sales tax revenues.

The City of Clarendon’s November rebate was down 3.69 percent from one year ago for a total of $21,551.76.

Clarendon is still ahead 2.62 percent for the year to date.

Hedley saw a 35.55 percent drop for November to $425.15, and Howardwick’s rebate slipped 4.73 percent to $1,033.56.

Both Howardwick and Hedley are below their year-to-date totals compared to last year.

The Comptroller’s Fall 2004 economic forecast calls for slower economic growth during the next three years. Texas’ gross state product is expected to grow at an average annual rate of 3.3 percent during calendar years 2005, 2006 and 2007, down from the previous forecast of 4.2 percent average annual growth.

October state sales tax collections and November sales tax allocations to local governments represent September sales reported to the Comptroller in October by monthly tax filers and July, August and September sales reported to the Comptroller in October by quarterly tax filers.

The next local sales tax allocation will be made December 10.