From Staff Reports
The sales tax red ink turned a slight shade redder this month.
Based on October’s taxable retail sales in the city, the State Comptroller’s Office sent the City of Mineral Wells a December check totaling $258,783.80 from its 1.5-cent sales tax levy. October’s sales were reported to and collected by the state in November.
That check represented a 31.46 percent decrease from its December 2008 check, and dropped the city’s 12-month allocations for the year to 25.63 percent below 2008’s receipts.
The news wasn’t much better in other area towns with a sales tax. The biggest drop in December collections was seen in Strawn, which realized a 41 percent drop in sales taxes. Millsap’s December check fell 23 percent short of its December 2008 receipts.
The lone area exception continues to be Gordon. It’s October taxable retail sales produced a check for the town that reflected a 41 percent increase, while for the year Gordon’s sales tax collections are 12 percent ahead of last year’s pace.
Texas Comptroller Susan Combs said the state collected $1.70 billion in sales taxes in November, down 14.4 percent compared to November 2008.
“Sales tax collections, declining since February 2009, continued to be weak in November,” Combs said. “Compared to a year ago, sales tax collections were down across all major sectors of the Texas economy, including oil and natural gas production, construction, manufacturing and retail trade.”
The comptroller sent cities, counties, special purpose districts and transit systems $417.1 million in December sales tax allocations, down 14.6 percent compared to last December. The final sales tax allocation of 2009 brings local sales tax revenue for the year to $5.6 billion, 5.1 percent less than in 2008.
Combs sent Texas cities December sales tax allocations of $279.6 million, down 14.9 percent compared to December 2008. Counties’ December sales tax allocations totaled $24.6 million, down 20.2 percent compared to December 2008.
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