Aside from the city of Rockwall, merchants across the county continued to report strong gains in sales tax rebate revenue during April and for the fiscal year so far, according to a report issued Wednesday by the Texas Comptroller’s Office.
Comptroller Glenn Hegar said state sales tax revenue totaled $2.61 billion in May, 13.2 percent less than in May 2019 and the steepest year-over-year decline since January 2010.
“Significant declines in sales tax receipts were evident in all major economic sectors, with the exception of telecommunications services,” Hegar said. “The steepest decline was in collections from oil and gas mining, as energy companies cut well drilling and completion spending following the crash in oil prices. The business closures and restrictions and stay-at-home orders because of the COVID-19 pandemic spurred deep drops in collections from restaurants, amusement and recreation services and physical retail stores. These declines were offset in part by increases from big-box retailers and grocery stores that remained open as essential businesses, online retailers and restaurants that could readily pivot to takeout and delivery service. With the easing of state and local government social distancing orders beginning in May, business activity in the sectors most affected by measures to curb the pandemic should begin to slowly recover, but operations resuming at reduced capacity will result in continued reductions in employment, income and activity subject to sales tax for months to come.”
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by brad kellar
june 12, 2020