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News Release from Comptroller Susan Combs

For Immediate Release
March 13, 2009

Comptroller Susan Combs Sends $433 Million in Sales Tax
Revenue to Local Governments

(AUSTIN) — Texas Comptroller Susan Combs today announced state sales tax revenue in February totaled $1.74 billion, down 2.6 percent compared to February 2008.

“State sales tax collections declined in February as important sectors such as retail trade and construction continue to struggle,” Combs said. “While state sales tax revenue has grown 2.8 percent through the first half of fiscal 2009, further declines are expected as the economy continues to weaken.”

Combs delivered $433.4 million in March sales tax payments to Texas cities, counties, transit systems and special purpose taxing districts. Local sales tax allocations are down 0.6 percent compared to March 2008. So far this calendar year, local sales tax allocations remain up 2.2 percent compared to the first three months of 2008.

State sales tax revenue for February and March payments made to local governments represent sales that occurred in January.

Combs sent March sales tax payments of $291.1 million to Texas cities, down 0.7 percent compared to March 2008. Since Jan. 1, city sales tax allocations are 1.5 percent higher than the same period last year. Texas counties received sales tax payments of $27.5 million, up 2.5 percent compared to one year ago. Calendar year-to-date, county sales tax allocations are 7.2 percent higher than last year.

The 150 special purpose taxing districts around the state received $17.3 million in sales tax revenue, up 21.6 percent compared to last March. Ten local transit systems received $97.4 million, down 4.3 percent.

For details of March 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 http://www.window.state.tx.us/taxinfo/allocsum/compsum.html. The Comptroller’s next sales tax allocation will be made on Friday, April 10.

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