By David A. Diaz -- Legislative Media
Published: 11-12-08
Edinburg’s retail economy during September 2008 as measured by the amount of local and state sales taxes generated by a wide range of local businesses was up almost 11 percent over the same month in 2007 the Edinburg Economic Development Corporation has announced.
From January through September the local sales taxes generated were more than 4.5 percent higher than during the same period in 2007.
The local sales tax is used to help pay for dozens of major city services ranging from new streets to city personnel.
The EEDC is the jobs-creation arm of the Edinburg City Council.
It’s five-member governing board which is appointed by the Edinburg City Council includes Mayor Joe Ochoa; former Mayor Richard García who serves as board president; Fred Palacios; Dr. Glenn E. Martínez Ph.D.; and Elias Longoria Jr.
The local sales taxes are generated by the city’s 1 1/2 cent local sales tax and the 1/2 cent economic development sales tax that is administered by the EEDC.
Retail businesses are required to collect both the local and state sales taxes and send them to the Texas Comptroller of Public Accounts. The state government then sends the local share of the sales taxes to the communities in which they originated.
The September 2008 figure represents local sales generated by monthly filers along with July August and September sales reported by quarterly tax filers and reported to the Texas Comptroller of Public Accounts in October. Then in November the state sent the September 2008 local sales tax revenue back to the city in the form of a rebate.
For the month of September 2008 Edinburg generated $1409055.43 in local sales taxes compared with $1272468.02 in September 2007 – an increase of 10.73 percent.
From January through September 2008 Edinburg has generated $12972913.58 in local sales taxes compared with $12412768.50 during the same period in 2007 – an increase of 4.51 percent.
McAllen – the largest economic engine in South Texas – for the month of September showed the smallest monthly increase of all major cities in the Valley: less than one percent.
McAllen’s economy generated almost $5.1 million in local sales taxes in September 2008 compared with more than $5 million during the same month in 2007 an increase of only .76 percent.
According to the comptroller’s office Hidalgo County reported an almost 5.8 percent increase in total local sales taxes collectively generated by the cities in the county. The county itself does not collect a local sales tax.
For the month of September 2008 all cities in Hidalgo County generated almost $11 million in local sales taxes up 5.79 percent compared with September 2007 which reached more than $10.3 million.
Year-to-date all cities in Hidalgo County have generated more than $115 million in local sales taxes up almost four percent over the same period in 2007 when total local sales taxes were more than $111 million.
For the month of September 2008 all cities in Cameron County generated more than $5.6 million in local sales taxes compared with more than $5.2 million during the same month in 2007 an increase of almost eight percent.
Cameron County also does not collect a local sales tax.
Year-to-date all cities in Cameron County collected more than $58.7 million in local sales taxes compared with almost $56 million during the same period in 2007.
Other major cities in Hidalgo and Cameron counties reported the following monthly sales tax figures.
• Weslaco’s retail economy generated more than $818000 in local sales taxes in September 2008 compared with almost $671000 during September 2007 an increase of almost 22 percent. The improvement was the best among all major Valley cities.
• Brownsville’s retail economy generated $2.9 million in September 2008 – more than 6.7 percent better that the September 2007 level of more than $2.7 million.
• Harlingen’s retail economy generated almost $1.8 million in local sales taxes in September 2008 compared with more than $1.6 million in September 2007 – an 11.49 percent improvement.
• Mission’s retail economy showed an almost 4.2 percent increase in its monthly sales tax revenue during September 2008 generating more than $1.1 million compared with $1057801.51 in September 2007.
• Pharr’s retail economy generated more than $966000 in local sales taxes in September 2008 compared with almost $891000 during the same month in 2007 an increase of almost 8.5 percent.
According to Texas Comptroller Susan Combs:
The state collected $1.73 billion in sales tax revenue in October up 5.2 percent compared to October 2007.
“Sales tax collections grew in the first two months of fiscal 2009 however at slower rates than generally seen over the past three years” Combs said. “Collections have continued to increase overall but remittances from the key retail trade sector have begun to decline slightly as consumers grow increasingly cautious and confidence erodes.”
On Friday November 7 Combs distributed $548.3 million in November sales tax rebates to cities counties transit systems and special purpose taxing districts. Local sales tax allocations are up 4.4 percent compared to November 2007.
Combs sent Texas cities $373.8 million in sales tax allocations up 4 percent compared to November 2007. So far this calendar year city sales tax allocations are up 5.2 percent compared to the same time period last year. Texas counties received November sales tax allocations of $33 million up 8.7 percent compared to one year ago. For the calendar year-to-date county sales tax allocations are running 7.6 percent ahead of 2007.
The 137 special purpose taxing districts around the state received $20.5 million in sales tax up 23.4 percent compared to last November. Ten local transit systems received $120.9 million in November sales tax rebates up 1.7 percent compared to a year ago.
October state sales tax collections and November sales tax allocations to local governments represent September sales reported to the comptroller in October by monthly tax filers and July August and September sales reported to the comptroller in October by quarterly tax filers.
For details of November 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 local sales tax allocation will be made on Friday Dec. 12.
Find details on all the services of the comptroller’s office at www.window.state.tx.us including a transparent look at state spending at www.window.state.tx.us/wherethemoneygoes.
Legislative Media reports on major legislation that affects South Texans. For more on this and related stories please log on to www.EdinburgPolitics.com
