Sales Tax Inches Upward

The state sales tax brought in $1.68 billion in April, according to the latest monthly revenue report from Texas Comptroller Susan Combs. The total revenue has grown 1.4% from April 2009, she said.

Tax revenue from retail sales were up almost 5%, but sales tax collections resulting from oil and gas activity and construction were down, according to the report.

“This modest increase is welcome after 14 consecutive months of year-over-year declines,” Combs said. “April may signal the beginning of a recovery in sales tax collections, although further declines may occur as the sales tax gradually returns to growth.”

The state distributed $567 in sales tax allocations to local governments last week.

The May allocations are up 4.7% from May 2009, but local allocations so far in calendar 2010 are down 4.8% from the same period in 2009.

Cities will receive $385.2 million, up 5% from May 2009.

Counties will receive sales tax payments of $33.7 million.

Other allocations include $125.5 million going to 10 public transit districts and $22.4 million to 165 special taxing districts.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER