Comptroller distributes $654 million in local sales tax across the state; City of Waxahachie 'optimistic'
AUSTIN – Comptroller Susan Combs announced Wednesday, Feb. 9, the state’s sales tax revenue in January was $1.83 billion, an increase of 10.4 percent compared to a year ago.
“Sales tax revenues have now improved for the last ten months, reflecting increased activity in almost all major economic sectors,” said Combs.
“The strongest growth was from sectors fueled by business spending, such as oil and gas activity. Tax collections from retail trade were also up.”
Combs will send $654.8 million in local sales tax to Texas cities, counties, transit systems and special purpose taxing districts, up 5.9 percent compared to sales tax distributions to local governments in February 2010.
Sales tax collections received for the city of Waxahachie in February totaled $1,197,218, a 5.4 percent increase over the February 2010 collection of $1,138,660.
“We are optimistic about the direction that sales tax revenues seem to be headed. We’ve had several months with positive growth and that is very encouraging,” said City Manager Paul Stevens.
In 2009, Waxahachie, along with many other cities, began to experience a dramatic decline in sales tax revenues. Early last year, tax revenues started to perk up.
“The February returns are representative of the December collections. December is also traditionally the largest month of the year because of the holiday shopping season. That being considered, the latest collections are even more positive,” said Stevens.
Community Relations Manager Amy Hollywood believes everyone shopping local is key.
“These most recent collections not only indicate that consumers are not only purchasing more, but that are also shopping locally,” said Hollywood.
January state sales tax collections and February’s local sales tax allocations represent sales made in December, and also include earlier sales by businesses that report sales tax to the comptroller on a quarterly or annual basis.
The 175 special purpose taxing districts around the state will get $28.6 million in sales tax, up 16.1 percent compared to February 2010. Ten local transit systems will receive $146 million in February sales tax payments, up 3.8 percent compared to a year ago.
The comptroller’s March sales tax allocation will be made on Friday, March 11.