Texas sales tax collections fell 5.2% in May to $1.77 billion, Comptroller Susan Combs said in her latest monthly report.

"Weakness throughout most sectors of the economy resulted in a significant decrease in May sales tax collections," she said. "While year-to-date sales tax revenue is up 0.5% for state fiscal 2009, further declines are expected this year."

Combs sent $441.1 million in June local sales tax allocations to cities, counties, transit systems and special-purpose taxing districts, down 3.9% compared to June 2008.

The comptroller said June sales tax allocations of $297 million to Texas cities were down 3% compared to June 2008. So far this calendar year, city sales tax allocations are down 0.5% compared to the same time period last year.

Texas counties received sales tax payments of $26.4 million, down 6.9% compared to last June. Sales tax allocations to counties so far in 2009 are up 2.7% from 2008.

In addition, $17.1 million went to 150 special-purpose taxing districts around the state, down 0.9% compared to last June. Ten local transit systems received $100.4 million in sales tax allocations, down 6% from June 2008.

June's sales tax allocations represent sales that occurred in April.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.