Dateline: October 20, 2005

City sales tax rebate increases 21 percent

By Roger  Estlack, Clarendon Enterprise

Making up for ground lost in August, the City of Clarendon posted a big gain in sales tax collections last month, according to information released Friday by Texas Comptroller Carole Keeton Strayhorn.

Clarendon received a September allotment totaling $22,392.89, which is 21.54 percent more than the same period last year.

After starting the calendar year with lower returns, local sales produced increased returns for five months in a row before tapering off in August. This newest allotment pushes the city’s year-to-date total to $222,781.43, which is an increase of more than seven percent.

Hedley and Howardwick also received increased allocations this month. Hedley’s received $679.27, up from $436.22 last September, and Howardwick was up 6.26 percent to $1,190.42.  Both cities are running just slightly more than one percent ahead for their year-to-date totals.

Statewide, Strayhorn said Texas took in $1.33 billion dollars in sales tax in September, a 14.2 percent increase over September 2004. 

September state sales tax collections and October allocations of local tax revenue represent sales that occurred in August. 

Since Hurricane Katrina struck the Gulf Coast on August 29, and Hurricane Rita struck on September 24, these sales tax figures do not reflect the impact of the two storms.  The impact will begin to be seen when businesses report their September sales tax to the Comptroller later this month, and when November sales tax allocations are sent to local governments.

The double-digit increase in tax revenue in October’s report can be credited to the continued strength of the Texas economy, notably the mining and construction sectors, and reflects the three-day Sales Tax Holiday that annually packs stores with Texans and out-of-state shoppers who splurge on taxable items along with tax-free clothing and shoes. 

  Strayhorn sent sales tax allocations of $247.1 million to Texas cities, 11.3 percent more than October 2004. Calendar year-to-date, city sales tax rebates are up 8.1 percent.