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News Release from Comptroller Susan Combs

For Immediate Release
August 14, 2009

Comptroller Susan Combs Distributes $544 Million in Local Sales Tax Revenue

(AUSTIN) — Texas Comptroller Susan Combs today said the state collected $1.65 billion in sales tax revenue in July, down 11.6 percent compared to one year ago.

“Sales tax collections in July were again down significantly as major sectors of the economy, such as retail trade; oil and natural gas; and construction, remain weak,” Combs said. “The sharp drop in revenue is a reflection of the current poor performance of these sectors as well as unusually strong sales tax collections in July 2008.”

Combs sent $544 million in August sales tax allocations to local governments, down 6.8 percent compared to August 2008. So far this calendar year, sales tax allocations to local governments are down 2.2 percent compared to this time last year.

Combs sent sales tax payments of $367.4 million to Texas cities, down 6.5 percent compared to last August. Calendar year-to-date, city sales tax revenues trail 2008 by 2.3 percent. Sales tax payments of $33.8 million went to Texas counties, 4.2 percent below last August. So far in calendar year 2009, county sales tax allocations are up 0.2 percent compared to last year.

In addition, $21.2 million in sales tax revenue went to 151 special purpose taxing districts, down 0.8 percent compared to August 2008. Ten local transit systems received $121.5 million, down 9 percent compared to a year ago.

August sales tax allocations represent sales taxes collected in June by businesses that report sales taxes monthly, and sales taxes collected in April, May and June by quarterly filers.

For details of August 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.

Due to the Labor Day holiday, the Comptroller’s next sales tax allocation will be delayed until Monday, Sept.14.

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