By David A. Díaz -- Legislative Media
Published: 10-22-08
Edinburg’s retail economy between January and August 2008 as measured by the amount of local and state sales taxes generated by a wide range of local businesses was up almost four percent during the first eight months of 2007 the Edinburg Economic Development Corporation has announced.
For the month of August 2008 Edinburg’s economy was up almost 10 percent in the amount of local sales taxes generated during August 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 August 2008 figure represents local sales taxes collected during that month and reported to the Texas Comptroller of Public Accounts in September. Then in October the state sent the August 2008 local sales tax revenue back to the city in the form of a rebate.
During the first eight months of 2008 Edinburg has generated $11563858.15 in local sales taxes compared with $11140300.48 from January through August 2007 – an increase of 3.80 percent.
For the month of August 2008 Edinburg generated $1147959.41 in local sales taxes compared with $1045385.58 in August 2007 – an increase of 9.81 percent.
McAllen – the largest economic engine in South Texas – along with all major cities in the Valley showed an increase in local sales taxes generated for the month of August.
McAllen’s economy generated more than $4.4 million in local sales taxes in August 2008 compared with more than $4.1 million during the same month in 2007 an increase of 6.92 percent.
According to the comptroller’s office Hidalgo County reported an almost six 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 August 2008 all cities in Hidalgo County generated more than $9.5 million in local sales taxes up 5.92 percent compared with August 2007 which reached more than $9 million.
Year-to-date all cities in Hidalgo County have generated more than $104 million in local sales taxes up more than 3.7 percent over the same period in 2007 when total local sales taxes were more than $100.6 million.
For the month of August 2008 all cities in Cameron County generated more than $5.1 million in local sales taxes compared with more than $4.9 million during the same month in 2007 an increase of almost five percent.
Cameron County also does not collect a local sales tax.
Year-t0-date all cities in Cameron County collected more than $53 million in local sales taxes compared with more than $50.7 million during the same period in 2007.
Other major cities in Hidalgo and Cameron counties reported the following monthly sales tax figures.
• Brownsville’s retail economy generated more than $2.6 million in local sales taxes in August 2008 – more than 1.5 percent better than the August 2007 level of more than $2.5 million.
• Harlingen’s retail economy showed the largest increase in local sales tax collections in August among major Valley cities. That community generated slightly more than $1.6 million in local sales taxes in August 2008 compared with slightly more than $1.4 million in August 2007 – a 13.66 percent improvement.
• Mission’s retail economy showed an almost three percent increase in its monthly sales tax revenue during August 2008 generating almost $970000 compared with almost $943000 in August 2007.
• Pharr’s retail economy generated almost $930000 in local sales taxes in August 2008 compared with more than $902000 during the same month in 2007 an increase of more than three percent.
• Weslaco’s retail economy generated more than $717000 in local sales taxes in August 2008 compared with almost $669000 during August 2007 an increase of 7.2 percent.
According to Texas Comptroller Susan Combs:
The state took in $1.68 billion in sales tax in September a 3.7 percent increase over September 2007.
“Growth in sales tax collections continued at a modest pace in the first month of fiscal 2009” Combs said. “While growth remains positive overall sectors such as construction retail trade and restaurants are showing signs of slowing down.”
Combs sent $452.7 million in monthly sales tax payments to Texas cities counties transit systems and special purpose taxing districts up 2 percent compared to last October. So far in calendar year 2008 local sales tax allocations average 6.2 percent higher than last year.
Combs sent sales tax allocations of $305.1 million to Texas cities 1.4 percent more than October 2007. Calendar year-to-date city sales tax allocations are up 5.4 percent. Texas counties received October sales tax payments of $28.6 million up 2.6 percent compared to a year ago. Calendar year-to-date county sales tax allocations are 7.4 percent higher than last year.
The 138 special purpose taxing districts throughout Texas received $16.9 million in sales tax up 15.3 percent compared to last October. So far this year sales tax allocations to special purpose districts are up 17.9 percent compared to 2007.
Ten local transit systems received $102 million in October sales tax allocations up 1.8 percent compared to a year ago. Year-to-date transit sales tax revenues are up 6.9 percent.
September state sales tax collections and October allocations of local tax revenue represent sales that occurred in August and were reported to the Comptroller in September.
For details of October sales tax payments to individual cities counties transit systems and special purpose districts see 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 November 7.
Legislative Media reports on major legislation that affects South Texans. For more on this and related stories please log on to www.EdinburgPolitics.com
