Feb. sales tax revenue down 22.5%
|Trinity Standard - Local News
Stories Added - March 2010
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Trinity Standard -
TRINITY – After posting a record annual high during 2009, sales tax income for Trinity has declined sharply in recent months, dipping by over 22.5 percent during February. According to a report issued by Texas Comptroller Susan Combs, Trinity’s February sales tax payment of $145,819.81 was down by $42,419.68 from the $188,239.49 received one year ago. The February 2009 payment was the largest received by the city. While the latest check from Combs was sharply down from 2009, it is the second largest February check that the city has ever received. Combs’ office collects the local sales tax along with the state sales tax and sends the city a check for its share each month. The February check represents taxes collected by local merchants in December. It also includes taxes collected in October, November and December by merchants who file only quarterly statements with the Comptroller. The dip in sales tax income in February marked the fourth consecutive monthly decline in the local sales tax income. November’s $115,771.46 payment was down by 18.6 percent from one year earlier, December’s $41,639.33 check was down by 12.4 percent and January’s $37,128.76 total was down by 47.3 percent Under state law, one quarter of the Trinity’s 2 percent sales tax revenue -- $36,454.95 in February -- is earmarked for economic development and is paid to the Trinity Economic and Industrial Development Corporation (TEIDC). The remaining 75 percent -- or $109,364.86 in February -- goes into the City of Trinity’s general fund to support the operation of city services. So far this year, the tax has generated $182,948.57, which is down by $75,796.52 or 29.3 percent from the first two months of 2009. The city’s share was $137,211.43, which is down by $56,847.39 or 29.3 percent from the same period of 2009. Since the city’s current fiscal year began on Oct. 1, the tax has generated a total of $378,621.18 for the city’s general fund, a total that is down by $105,370.71 or 21.8 percent from the $483,991.89 collected during the same five-month period last year. During this fiscal year, TEIDC has received $94,655.30 from the tax, which is down by $26,342.68 from the same period last year. In her report, Combs said the state received $1.7 billion in sales tax revenue, which represented a 14.2 percent decrease from one year ago. “Collections continue to be down in major industry sectors like retail trade, oil and natural gas production, construction and manufacturing,” Combs said. “We will continue to monitor sales tax revenue, and although we expect further collection declines in the near term, it is anticipated the rate of decline will moderate and then return to revenue growth sometime in the second quarter of 2010.” Combs sent February sales tax allocations of $417.7 million to Texas cities, which was down by 6.2 percent from February 2008. Texas counties received $35.1 million in February rebate checks, down 15.1 percent compared to one year ago. Trinity County is among the counties that do not currently collect a sales tax. In addition to Trinity, one other Trinity County city collects a sales tax. Groveton, which also assesses a 2 percent tax, received a February check for $17,402.42. This total is down by $908.78 -- or almost 5 percent -- from the $18,311.20 received in February 2009. Since Jan. 1, Groveton has received $26,522.84 from the tax, a total that is down by $2,987.17 or 10.1 percent from last year. In the latest report, Houston received the state’s largest check for $51.4 million, which was down by 12.4 percent from the $58.7 million delivered one year ago. The $22.6 million issued to Dallas in February reflects a 4.2 percent decrease from the $23.6 million received one year earlier. San Antonio’s sales tax allocation was $22.8 million, which was down by 0.2 percent from the $22.9 million received one year ago. The Austin sales tax allocation for February was $15.4 million, which was up by 11.8 percent from the $13.8 million received one year earlier. Other East Texas cities that received February rebates: • Huntsville received a payment of $706,350.96, which was down by 2.8 percent from Februry 2008. Since Jan. 1, the city has received over $1.1 million from the tax, which is down by 6.6 percent from the same period last year. • Riverside received a payment of $10,377.85, which was down by 7.8 percent from the February 2009 payment of $11,251.76. Since Jan. 1, the city has received $19,351.57, which is down by 4.1 percent from the $20,195.69 received last year. • Crockett received a payment of $151,249.12, which was down by almost 9.5 percent from the $167,095.03 received one year ago. Since Jan. 1, the city has collected $248,682.78, which is down by 15.9 percent from the $295,712.98 collected during the same period last year. • Lovelady received a payment of $1,860.80, which was down by 46.2 percent from the February 2009 payment of $3,459.14. Since Jan. 1, the city has received $4,234.21, which is up down 31.4 percent from the $6,172.86 collected during the same period last year. • Onalaska received a payment of $53,191.50, which was up by 10.7 percent from the $48,051.47 collected one year ago. Since Jan. 1, the city has received $77,364.25, which is down by 23.4 percent from the $89,332.17 received during the first two months of 2009.. • Livingston received a payment of $305,717.53, which was down by 16.1 percent from the $364,599.72 collected one year ago. Since Jan. 1, the city has received $528,101.03, which is down by 20.9 percent from the $667.321.77 collected last year. • Coldspring received a payment of $30,303.14, which was up by 52.7 percent from the February 2009 payment of $19,846.96. Since Jan. 1, the city has received $46,347.35, which is up by 18.6 percent from the $39,083.80 received during the same period last year.