|Polk County Enterprise - Local News
Stories Added - January 2010
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First 2010 sales tax allocations show steep drop
Polk County Enterprise - January 2010
AUSTIN– Sales tax allocations made Friday show retail sales in all Polk County cities suffered a steep drop during November, according to reports released by Comptroller Susan Combs. The City of Livingston’s monthly allocation was $222,383.50, down 26.53 percent from the January 2009 payment of $302,722.05. The decrease was “not altogether unexpected,” according to Livingston City Manager Marilyn Sutton. It is a concern and disappointing, but we’re monitoring it on a daily basis and developing a plan should the decline continue, Sutton told city officials Tuesday. The January report marks the fourth straight month of declining revenue, Sutton said. The city still has good fund balances and some larger projects may be postponed to ensure the city stays on sound financial footing, she added. The January 2009 revenues may have an anomaly since many Livingston area residents were spending funds from FEMA and insurance policies to repair damage from Hurricane Ike. The sales tax revenue for January 2008 was about $232,000, Sutton said. Livingston’s current budget calls for a 2 percent increase in sales tax revenue for the year. Goodrich suffered the steepest decline, 71.01 percent. The January payment of $1,731.06 dropped from $5,971.36 in 2009. The City of Onalaska suffered a 41.44 percent decline. Last week’s payment of $24,172.75 was down from $41,280.70 in January 2009. Corrigan’s sales tax revenue dropped to $15,531.22 from $22,466.14 a year ago, a decline of 30.86 percent, reports show. Combs announced Friday the state collected $1.65 billion in sales tax revenue in December, down 11.6 percent compared to December 2009. “Declining sales tax collections, beginning in February 2009, have now extended through December 2009,” Combs said. “As has been seen the past several months, collections are down across most major sectors of the Texas economy, including oil and natural gas, construction, manufacturing and retail trade. It is expected the doubledigit declines in tax collections seen over the last half-year will first moderate with collections returning to growth during the first or second quarter of 2010.” Combs sent cities, counties, transit systems and special purpose taxing districts their first sales tax allocations of 2010 – $405.2 million, down 11.8 percent compared to January 2009. Combs sent January sales tax allocations of $274.4 million to Texas cities, down 11.4 percent compared to January 2009.