December Collections Rise

Despite fears of economic weakness, Texas collected $1.83 billion of sales tax revenue in December, a 9.1% increase over December 2006.

From that revenue, Comptroller Susan Combs sent cities, counties, transit systems, and special purpose taxing districts their first sales tax allocations of 2008 — $448.3 million, up 7.3% compared to January 2007. December state sales tax collections and January allocations to local governments represent sales that occurred in November.

“Since the state’s 2008 fiscal year began last September, sales tax collections are up 7.3% compared to the same point in fiscal 2007,” Combs said. “While increases have moderated compared to those of the past two years, solid sales tax growth continues.”

Texas cities received $302.2 million, a 7.4% increase in January versus the same month last year. Texas counties received sales tax payments of $26.8 million, up 5.7% compared to last January.

Special purpose taxing districts received $14.8 million, up 16.5% compared to last January. Ten local transit systems received $103.4 million in sales tax allocations, up 6.2% compared to a year ago.

Houston, the state’s largest city, received a sales tax payment of $39.3 million in January, up 10% from $35.7 million the previous year. The city’s Metropolitan Transit Authority received a sales tax payment of $40.1 million, up 8% from $37.1 million.

Among the cities that saw sales tax revenues fall was Texas’ second-largest city, San Antonio, whose January receipts of $16 million were down 6.11%. The San Antonio Advanced Transportation District received a sales tax payment of $3.3 million, down 5.38% from January 2007.

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