Local News
OC sees drop in November sales tax compared to 2008
Texas Comptroller Susan Combs said the state collected $1.70 billion in sales tax in November, down 14.4 percent compared to November 2008.
Locally, the Orange County total payment received for November was $687,975.66, which is a whopping 30.42 percent less than November 2008.
“Sales tax collections, declining since February 2009, continued to be weak in November,” Combs said. “Compared to a year ago, sales tax collections were down across all major sectors of the Texas economy, including oil and natural gas production, construction, manufacturing and retail trade.”
For the first time in 2009, all seven incorporated cities in Orange County declined during the same allocation period and it was a considerable decline.
The smallest decline was in Pine Forest, just north of Vidor, which dropped 13.3 percent compared to November 2008, while the largest decrease was in Rose City, which had a 47.3 percent decline compared to last November.
Bridge City had the second largest drop of Orange County communities this month at 35.32 percent. Bridge City also sustained the most extensive damage of all Orange County cities from Ike’s storm surge, so, once stores reopened following the storm, sales would most presumably skyrocket then.
Despite a decline in payments received compared to November 2008, all cities remain ahead of 2008 payments to date.
Orange is still 21.59 percent ahead of 2008 payments to date and has received $4.4 million in payments to date compared to just $3.6 million to date in 2008.
“A year ago, the city experienced a significant increase due to Hurricane Ike repairs and replacement items for homes,” said Jay Trahan, City of Orange director of Economic Development. “As a result, we are seeing a leveling of sales tax allocations to pre-Hurricane Ike numbers. Local retailers are hoping for a strong finish during the final weeks of 2009, and we encourage everyone to shop Orange first to meet their holiday needs.”
Bridge City is 12.97 percent ahead to date and has received $1.3 million in payments to date, while West Orange is 9.41 percent ahead of year to date figures and has received $1.04 million in payments to date.
The Comptroller sent cities, counties, special purpose districts and transit systems $417.1 million in December sales tax allocations, down 14.6 percent compared to last December. The final sales tax allocation of 2009 brings local sales tax revenue for the year to $5.6 billion, 5.1 percent less than in 2008.
Combs sent Texas cities December sales tax allocations of $279.6 million, down 14.9 percent compared to December 2008. Counties’ December sales tax allocations totaled $24.6 million, down 20.2 percent compared to December 2008.
November state sales tax collections and December sales tax allocations to local governments represent sales that occurred in October.
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