The Clarendon Enterprise

Dateline: February 17, 2005

Local sales tax rebates decline as state's rises

By Roger Estlack, Clarendon Enterprise

AUSTIN – Texas Comptroller Carole Keeton Strayhorn last week reported that state sales tax collections rose for the 17th consecutive month in January. The state collected $1.39 billion in sales tax revenue, up 6.1 percent compared to January 2004.

But the report wasn’t good news for three Donley County cities where collections are down this year.

The City of Clarendon’s sales tax rebate dropped 8.19 percent from this time last year to $25,414.25. Howardwick was down 29.3 percent to $798.44, and Hedley fell 11.6 percent to $557.97.

Statewide, Strayhorn returned $502.8 million in local sales tax to Texas cities, counties, transit systems and special purpose taxing districts, up 5.2 percent compared to sales tax distributions to local governments in February 2004.

“These numbers indicate that Texas’ recovering economy had a positive impact on holiday season sales,” Strayhorn said.

January state sales tax collections and February’s local sales tax allocations primarily represent sales made in December but also include some earlier sales by businesses that report sales tax to the state comptroller’s office on a quarterly or annual basis.