Texas Sales Tax Revenues Rise for 49th Month

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DALLAS - Texas sales tax revenue rose 5.6% to $2.27 billion in April compared to the same month in 2013, according to Texas Comptroller Susan Combs.

The May 7 report represented the 49th straight month of sales tax growth in the state, with increases in telecommunications and services, Combs said.

"Increased business spending in the wholesale trade sector also contributed to the latest monthly gain," Combs said.

April collections were about 8.6% higher than March's $2.09 billion.

Combs will send cities, counties, transit systems and special purpose taxing districts their May local sales tax allocations totaling $716 million, up 7.1% compared to May 2013.

Among the largest cities, Houston saw a 2.18% increase to $58.1 million in April. For the year, Houston's share of the sales tax revenue is up 6.26% to 268.5 million.

San Antonio's share soared 19.8% to $29.7 million and is up 20% for the year to $127.2 million.

Dallas' receipts were up 8.23% in April to $24.6 million and have risen 6.78% to $106.9 million for the year.

Austin received $17.2 million, representing a healthy 11.3%. For the year, Austin's receipts are up 8.7% to $76.4 million.

Fort Worth's share rose 5.6% to $12.1 million with a year-to-date increase of 6.5% to $52.6 million.

With no income tax, triple-A-rated Texas is heavily dependent on state sales tax revenue.

The Federal Reserve Bank of Dallas forecast continuing growth in the state in a report released this month.

"Company outlooks on average have improved significantly in 2014 over fourth quarter 2013 in both the services and manufacturing sectors," the report said. "The employment forecast has been upgraded to 2.8% growth for the year."

State and local officials are still celebrating Toyota's recent decision to move its U.S. headquarters to Plano from Torrance, Calif. Toyota's trucks are manufactured in San Antonio.

The Plano City Council is voting May 12 on creating a 100-acre reinvestment zone and providing 50% tax rebates over 10 years.

The new headquarters would add $300 million in real property and $50 million in business personal property to the Plano and Collin County tax rolls. Plano Mayor Harry LaRosiliere said the project would generate more than $70 million in property tax revenue and an equal amount in sales tax revenue over a 10-year period.

Texas added 64,100 jobs  in April 2014, according to the latest report. Over the year, Texas has added 348,000 jobs. For April 2014, the state's unemployment rate dropped to 5.2%, the lowest rate since September 2008.

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