Dateline: May 14, 2009

Cities' sales tax revenue drops

By Roger Estlack, Clarendon Enterprise

AUSTIN – Sales tax revenues fell for three Donley County cities when Texas Comptroller Susan Combs released May sales tax allocations last Friday.

The City of Clarendon’s rebate dropped 5.42 percent to $30,531.12 compared to the same period one year ago. Clarendon is, however, still ahead for the year-to-date but just barely. Total sales tax revenue for this calendar year is $125,773.64, up 0.52 percent from the same time last year.

Hedley’s May allocation was down 17.02 percent to $865.90, and that city is down 16.41 percent to $2,854.03 for the year.

Howardwick is also down 2.53 percent with an allocation of $1,160.44 and is 9.25 percent off for the year at $5,124.69.

Combs announced the state collected $1.65 billion in sales tax revenue in April, down 3.1 percent compared to April 2008.

“State sales tax revenue declined in April as most major sectors of the economy continue to struggle,” Combs said.  “Although year-to-date revenue is up 1.3 percent for fiscal 2009, decreases in monthly collections are expected to continue this year.”

Comptroller Combs sent May sales tax allocations of $367.1 million to Texas cities, down 2.8 percent compared to May 2008.  Calendar year-to-date, city sales tax allocations are down 0.03 percent compared to the same period last year. 

May’s sales tax allocations to local governments represent March sales that were reported to the Comptroller in April by monthly tax filers and January, February, and March sales reported to the Comptroller in April by quarterly tax filers.