OC sales tax payments up

Tommy Mann, Jr.

Texas Comptroller Susan Combs recently announced the state collected $1.65 billion in sales tax revenue in April, down 3.1 percent compared to April 2008.

“State sales tax revenue declined in April as most major sectors of the economy continue to struggle,” Combs said. “Although year-to-date revenue is up 1.3 percent for fiscal 2009, decreases in monthly collections are expected to continue this year.”

Nearly every incorporated city in Orange County received less in May than it did in its monthly collection in February and all received less in May than in March.

Combs said local governments will receive $541.8 million in May sales tax allocations, down 2.3 percent compared to May 2008. So far this calendar year, sales tax allocations to cities, counties, transit systems and special purpose taxing districts are up 0.5 percent compared to a year ago.

Comptroller Combs sent May sales tax allocations of $367.1 million to Texas cities, down 2.8 percent compared to May 2008. Calendar year-to-date, city sales tax allocations are down 0.03 percent compared to the same period last year. Texas counties received sales tax payments of $32.5 million, up 0.2 percent compared to one year ago. Calendar year-to-date, county sales tax allocations are 4.5 percent higher than last year.

In addition, $21.4 million went to 149 special purpose taxing districts throughout the state, up 15.2 percent compared to last May. Ten local transit systems received $120.8 million in sales tax allocations, down 3.8 percent compared to a year ago.

May’s sales tax allocations to local governments represent March sales that were reported to the Comptroller in April by monthly tax filers and January, February and March sales reported to the Comptroller in April by quarterly tax filers.

The City of Orange received a monthly payment of more than $447,000 for the month of May, which is 29.16 percent ahead of this time last year. Even with the current state of the economy, the city has received more than $2 million in 2009, which is more than 53 percent ahead of the same time period in 2008.

Jay Trahan, City of Orange director of economic development, said he attributes two things to the continued increase over 2008 figures.

“The sales tax increase may be attributed to continued hurricane-related recovery purchases, and residents shopping locally to meet their needs,” Trahan said. “As a result, all of us benefit and we encourage residents to continue to support local businesses.”

Bridge City continues ahead of its 2008 pace as the Hurricane Ike ravaged community has received more than $624,000 in payments this year, which puts Bridge City 26.88 percent ahead. For the month of May, Bridge City received a monthly payment of $140,126.87, which is more than $23,000 than its monthly payment in May 2008.

Another Ike-ravaged community is West Orange. For the month of May, the city of West Orange received a sales tax payment of $108,175.89 from the state, which is 15.67 percent more than it did in May 2008.

For the year to date, West Orange has received more than $540,000 in payments. This is nearly $97,000 ahead of the same time period through 2008.

The cities of Rose City and Pine Forest continue to be well ahead of prior figures.

Rose City sustained heavy damage from Hurricane Ike as well, including the majority of its businesses. Most of those have since reopened.

This western Orange County community is 24.04 percent ahead for 2009 when compared to the same year-to-date period in 2008. Pine Forest is 67.34 percent ahead year-to-date when compared to 2008.

Tommy Mann Jr. is a reporter for The Orange Leader. He can be reached at 409-883-3571, Ext. 2619 or tmann@orangeleader.com