Texas – In Some Places in Texas, Sales Tax Revenues Have Risen During the Pandemic


San Marcos and other cities have found a way to keep money flowing into their accounts in spite of the economic shutdown: the international shopping venue known as the internet. Online stores have remained open in this season of the coronavirus. The latest state sales tax distribution to cities — based on April’s taxable sales — was down 11.1%. At the same time, the sales tax allocation to San Marcos rose 51% for the same period.

Not all of these places are online or virtual destinations — some have distribution centers, or warehouses, or headquarters — but a number of Texas cities benefited from double-digit percentage sales tax increases in April or May, or both: San Marcos, Schertz, Victoria, Pflugerville, League City, McKinney, Lufkin, Carrollton and DeSoto. On the other end of the spectrum, 44 Texas cities — including Houston, San Antonio, Dallas, Austin and Fort Worth — each saw double-digit percentage decreases in sales taxes.

Those at the bottom of the list will be looking at spending cuts and/or property tax increases when they write their next budgets in September and October. They’re bringing in much less money than expected.

Those at the top of the list won’t be trapped in that financial squeeze play.


For more information: Valley Morning Star

Valley morning star
By ross ramsey
june 16, 2020