Dateline: February 16, 2006

Local sales tax receipts increase 12 percent

By Roger Estlack, Clarendon Enterprise

Donley County’s economy continues to generate higher sales tax receipts for local cities, according to Texas Comptroller Carole Keeton Strayhorn.

January figures released last week shows Clarendon, Hedley, and Howardwick all with double-digit increases over the same period last year.

Clarendon’s sales tax collection was up 12.37 percent to $28,559.48; and Howardwick’s receipts were up 10.07 percent to $878.92. The rebate at the City of Hedley came in 79.05 percent ahead of last January with a total of $999.87.

All three cities are now ahead of their year-to-date collections compared to the same time in 2005. Clarendon has posted gains in sales tax collections every month but one since last March.

Strayhorn said January’s state sales tax collections got a boost from a strong economy, holiday sales, and the rebuilding process that continues in Southeast Texas following Hurricane Rita.  The state collected $1.5 billion in sales tax revenue, up 12 percent compared to January 2005. 

Also, Strayhorn returned $572.9 million in local sales tax to Texas cities, counties, transit systems, and special purpose taxing districts, up 13.9 percent compared to sales tax distributions to local governments in February 2005. 

The Comptroller sent $390.5 million in sales tax to Texas cities, up 13.4 percent compared to February 2005 payments.

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