November Rebates Relate To September Sales

CLIFTON — Texas Comptroller Susan Combs reports that the state collected $1.52 billion in sales tax revenue in October, down 12.8 percent compared to October 2008.

“Declining sales tax collections, which began in February, have continued with October’s collections,” Combs said. “Tax collections are down in major sectors of the economy, including retail trade, oil and natural gas and construction.”

Combs sent sales tax payments of $342.6 million to Texas cities, down 8.3 percent compared to last November. Calendar year-to-date, city sales tax revenues trail 2008 by 4.2 percent. Sales tax payments of $28.2 million went to Texas counties, down 14.2 percent compared to a year ago.

In Bosque County, cities are running an average of 13.52 behind last year’s to-date pace, while for November the tally was down 20.69 percent, with some cities showing gains, some losses. The county (unincorporated areas) are running 20.99 percent behind last year’s to-date pace.

See related chart for details.

October sales tax allocations represent sales taxes collected in September.

The allocation of sales tax rebates is rendered both to cities and rural areas (non-incorporated areas of counties) in Texas by the state comptroller, who collects the taxes and then rebates a portion back to the entities that collect them.

Sales taxes are added to the purchase of most goods based upon a percentage of the cost of the goods, and locations where the taxes are collected reap the benefits of the rebates.

The Comptroller’s next sales tax allocation will be made on Friday, Dec. 11.