Texas Comptroller of Public Accounts

Texas Comptroller of Public Accounts, Glenn Hegar

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Contact: Allen Spelce or R.J. DeSilva

For Immediate Release
January 12, 2007

Comptroller Susan Combs Delivers First Local Sales Tax Allocations of 2007

AUSTIN — Comptroller Susan Combs today announced that the state collected $1.67 billion in sales tax revenue in December, up 6.7 percent compared to December 2005.

Combs sent cities, counties, transit systems and special purpose taxing districts their first sales tax allocations of 2007. January payments to local governments total $417.8 million, up 4.2 percent compared to January 2006.

"It's good news that Texas cities, counties and other local entities continue to see a healthy increase in sales tax revenue, because of strong consumer spending," Combs said. But she also expects slower sales tax growth in the next two years. "We may see factors like more moderate consumer spending, a cooling housing market and stabilizing oil and gas prices affecting sales taxes."

Comptroller Combs sent January sales tax allocations of $282.3 million to Texas cities, up 8.5 percent compared to January 2006. Texas counties received sales tax payments of $25.3 million, up 10.3 percent compared to last January.

Another $12.7 million went to 115 special purpose taxing districts around the state, up 14.5 percent compared to last January. Ten local transit systems received $97.3 million in sales tax allocations, down 8.7 percent compared to a year ago.

December state sales tax collections and January allocations to local governments represent sales that occurred in November.

For details of January sales tax payments to individual cities, counties, transit systems and special purpose districts, locate the Monthly Sales and Use Tax Allocation Comparison Summary Reports on the Comptroller's Web site at www.window.state.tx.us/taxinfo/allocsum/compsum.html.

The Comptroller's next sales tax allocation will be made on Friday, February 9.


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