By David A. Díaz - Legislative Media
More Than 15 Percent Over Same Month in 2007
Edinburg’s retail economy during November 2008 as measured by the amount of local and state sales taxes generated by a wide range of local businesses was up more than 15 percent over the same month in 2007 the Edinburg Economic Development Corporation has announced.
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 A. Martínez Ph.D.; and Elias Longoria Jr.
For the month of November 2008 Edinburg generated $1197370.03 in local sales taxes compared with $1040411.98 in November 2007 – an increase of 15.08 percent.
From January through November 2008 Edinburg generated $15412734.51 in local sales taxes compared with $$14456157.67.
According to the comptroller’s office Hidalgo County reported a drop of 1.4 percent in total local sales taxes collectively generated by the cities in the county during November 2008. The county itself does not collect a local sales tax.
For the month of November 2008 all cities in Hidalgo County generated more than $9.7 million in local sales taxes down 1.4 percent compared with November 2007 which reached more than $9.9 million.
Also showing a monthly downturn was Cameron County.
In November 2008 all cities in Cameron County generated almost $4.6 million in local sales taxes compared with almost $5.1 million during the same month in 2007 a decrease of almost 8.2 percent.
Cameron County also does not collect a local sales tax.
McAllen – the largest economic engine in South Texas – for the month of November – also showed a drop in the monthly sales tax figure: minus 5.62 percent. This represented the second consecutive monthly decrease for the City of Palms. The October 2008 sales tax figure was minus 1.55 percent from the same month in 2007.
Brownsville the largest city in the Valley also reported a drop in local sales tax activities. In November 2008 Brownsville generated more than $2.4 million in local sales taxes a decrease of 14.5 percent over the same month in 2007 which registered more than $2.8 million in local sales taxes.
Harlingen showed a decrease too. In November 2008 Harlingen reported generating more than $1.4 million in local sales taxes compared with almost $1.5 million in November 2007 – a decrease of almost 1.6 percent.
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 November 2008 figure represents local sales taxes generated by monthly filers and reported to the Texas Comptroller of Public Accounts in December. Then in January the state sent the November 2008 local sales tax revenue back to the city in the form of a rebate.
Other major cities in Hidalgo County reported the following monthly sales tax figures.
• Weslaco’s retail economy generated more than $705000 in local sales taxes in November 2008 compared with almost $693000 in November 2007 an increase of 1.75 percent;
• Mission’s retail economy showed a drop of more than 1.7 percent in November 2008 when it generated $1 million in sales tax revenue compared with $1.02 million in November 2007;
• Pharr’s retail economy also showed a decrease. In November 2008 Pharr reported almost $846000 in local sales tax revenue down almost 3.9 percent from November 2007 when it generated almost $881000 in local sales tax revenue.
According to Texas Comptroller Susan Combs:
The state collected $1.86 billion in sales tax revenue in December up two percent compared to December 2007.
December state sales tax collections and January allocations to local governments represent sales that occurred in November.
“State sales tax collections have grown 3.9 percent for the first four months of state fiscal year 2009” Combs said. “Growth in overall collections has slowed compared to recent years while remittances from key sectors such as construction and retail trade have declined.”
Combs sent cities counties transit systems and special purpose taxing districts their first sales tax allocations of 2009 — $459.2 million up 2.4 percent compared to January 2008.
Combs sent January sales tax allocations of $309.9 million to Texas cities up 2.2 percent compared to January 2008. Texas counties received sales tax payments of $29 million up 8.2 percent compared to last January.
In addition $18.3 million went to 148 special purpose taxing districts around the state up 23.5 percent compared to last January. Ten local transit systems received $101.9 million in sales tax allocations down 1.4 percent compared to a year ago.
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.
For details of December 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 next local sales tax allocation will be made on Friday February 13.
Legislative Media reports on major legislation that affects South Texans. For more on this and related stories and photographs please log on to www.EdinburgPolitics.com
