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News Release from Comptroller Susan Combs

For Immediate Release
April 7, 2010

Local Governments to Receive $394 Million in Sales Tax Revenue

(Austin)— Texas Comptroller Susan Combs said today the state received $1.46 billion in sales tax revenue in March, down 7.8 percent compared to March 2009.

“For the second month in a row, the decline in sales tax collections continued to moderate,” Combs said. “Following an eight-month stretch of double-digit declines, the pace of revenue losses is slowing. The oil and gas, construction, manufacturing, and retail industries registered lower sales tax revenue collections than one year earlier. We expect further declines in the near term followed by a return to sales tax revenue growth later this year.”

Cities, counties, transit systems and special purpose taxing districts will receive $394.1 million in April sales tax allocations, a 3.9 percent decrease compared to April 2009. So far in 2010, monthly sales tax allocations to local governments lag 7.4 percent behind 2009.

On Friday, Comptroller Combs will send April sales tax allocations of $265.7 million to Texas cities, down 3.6 percent compared to April 2009. Calendar year-to-date, city sales tax allocations are running 7 percent lower than last year. Texas counties will receive sales tax payments of $24.0 million, down 7.7 percent compared to one year ago. Calendar year-to-date, county sales tax allocations are 12.9 percent lower than last year.

In addition, 164 special purpose taxing districts are getting $15.7 million in sales tax, down 1.8 percent compared to last April. Ten local transit systems will receive $88.6 million in sales tax rebates, down 3.9 percent compared to a year ago.

March state sales tax revenue and April payments made to local governments represent sales that occurred in February.

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

The Comptroller’s May sales tax allocation will be made on Friday, May 14.

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