Comptroller to Send December Sales Tax Allocations to Cities and Counties

By Will Johnson
Messenger Reporter

EAST TEXAS – Area cities and counties will soon receive their December sales tax revenue disbursements from the state. In a press release dated Dec. 6, Texas Comptroller Glenn Hegar stated he will send cities, counties, transit systems and special purpose taxing districts $695.2 million in local sales tax allocations for December, 10.8 percent more than in Dec. 2016.

As to what this means to area residents, Houston County Auditor Melissa Mosley previously provided an explanation of how the sales tax allocations affect property taxation in the county.

“Sales tax collections received by the County from the Comptroller are directly related to the ad valorem property tax reduction. When calculating the effective tax rate, the actual taxes collected – not budgeted – are reduced from the value, thereby reducing the tax rate. The county sales and use tax of 1/2 cent was put in place to lower the property tax. Whatever money we receive from sales tax is directly related to the amount of property tax rate reduction,” the auditor clarified.

“When anticipating revenues, the entire budget process is an educated guess. Houston County officials have historically been very conservative and realistic which has helped the county hold a recommended fund balance level, even while other entities were struggling and making cuts,” Mosley asserted.

Texas cities will receive $443.5 million, up 8.7 percent when compared to Dec. 2016. Texas counties can anticipate sales tax allocations of $41.7 million, up 14.6 percent compared to last year’s numbers.

In addition, Hegar will send $48.7 million to 248 special purpose taxing districts, up 23 percent compared to last year. The ten transit system authorities in Texas will receive $161.2 million in sales tax allocations, up 12.4 percent compared to a year ago.

The sales tax allocations referenced above represent “… sales made in October by businesses that report tax monthly.”

At the local level, Houston County showed a significant decrease in allocations for the month of November and the downward movement continued in December. The county has a tax rate of 0.50 percent and will receive $72,118.79 – down from $83,304.32 received for the same tax period last year, indicative of a 13.42 percent downward move. So far this year, Houston County has received $1,039,012.90 compared to last year’s total of $1,158,047.46 for a decrease of 10.27 percent.

The incorporated cities of Houston County showed mostly negative results with four of the five showing a decrease in the allocation of sales tax payments. The City of Crockett, which has a 1.5 percent tax rate, will receive $120,346.29 in sales tax allocations. This is down from $135,473.49 received for the same tax period last year and reflects an 11.16 percent decrease. Yearly total payments to date show Crockett has garnered $1,620,919.21 compared to last year’s total of $1,949,266.21 for a 16.84 percent decrease.

The City of Grapeland, which also has a 1.5 percent tax rate, will realize $12,722.40 in sales tax allocation payments. This is down from the $15,175.53 received for the same tax period last year and reflects a decline of 16.16 percent. Year to date figures are also indicative of a slight decline, going from $216,287.40 received last year at this time to $215,642.01 amassed so far this year, for a 0.29 percent decrease.

The City of Kennard, which has a 1.0 percent tax rate, will acquire $1,797.47 in disbursements. This is down from the $ 1,800.59 taken in during the same tax period last year, indicating a 0.17 percent decrease. Year to date figures are also showing a downward trend from $25,001.95 collected last year at this time to $24,965.07     received so far this year. This signifies a 0.14 percent decrease in sales tax payments.

The City of Latexo, which also has a 1.0 percent tax rate, will procure $1,734.06 in sales tax allocations. This represents a decrease from the $2,104.61 received for the same tax period last year and indicates a 17.6 percent decline. Year-to-date figures, however, are showing an increase from $19,795.73 (2016) to $21,668.84 (2017), which marks a 9.46 percent increase in allocations.

The City of Lovelady, which has a 1.25 percent tax rate, will garner $4,210.45 in sales tax allocations. This is more than the $2,804.21 accrued for the same tax period last year and reflects an increase of 50.14 percent. Year-to-date figures, however, are showing a decrease going from $72,997.26 to $60,585.88.  This represents a regression of 17 percent.

Anderson County, which has a 0.50 percent tax rate, will receive $204,092.01 in sales tax payments. This is an increase from $181,998.96 received for the same reporting period last year and indicates an incline of 12.13 percent. Year to date numbers, however are showing a slight downward move going from $2,547,820.68 received last year at this time to $2,503,864.46 received so far this year. The decreased allocation represents a shrinkage of 1.72 percent.

The City of Elkhart, which has a 1.25 percent tax rate, will receive $10,501.42 in sales tax allocations. This is down from the $11,597.07 received for the same tax period last year and represents a decrease of 9.44 percent. Year to date figures are also showing a decrease from $166,540.69 (2016) to $158,867.98 (2017), reflective of a 4.6 percent fall in tax allocation payments.

The City of Palestine, which has a 1.50 percent tax rate, will receive $442,815.25 in sales tax allocations. This is up from the $402,471.67 received for the same tax period last year and reflects an incline of 10.02 percent. Year-to-date figures, however, are showing a decrease from a total of $6,017,579.37 received last year at this time to $5,750,736.44 received so far this year, representative of a 4.43 percent drop.

Will Johnson may be contacted via e-mail at [email protected].