Comptroller to Send January Sales Tax Allocations to Cities and Counties

By Will Johnson                                                                                    

Messenger Reporter

EAST TEXAS – Area cities and counties will soon receive their January sales tax revenue disbursements from the state. In a press release dated Jan. 6, Texas Comptroller Glenn Hegar stated he will send cities, counties, transit systems and special purpose taxing districts $783.2 million in local sales tax allocations for the month of January, which is 2.6 percent more than in January 2020.

As to what this means to area residents, Houston County Auditor Melissa Jeter 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,” Jeter asserted.

Texas cities will receive $505.6 million, up 3.4 percent when compared to January 2020. Counties can anticipate sales tax allocations of $46.3 million, down three percent compared to last year’s numbers.

In addition, Hegar will send $64.4 million to 248 special purpose taxing districts, 10.8 percent over last year. The ten transit system authorities in Texas will receive $167 million in sales tax allocations, down 1.3 percent compared to a year ago.

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

At the local level, Houston County showed a decrease in allocations. The county has a tax rate of 0.50 percent and will receive $95,768.39 – down from $108,222.75 received for the same tax period last year, indicative of an 11.5 percent decrease.

The sales tax allocations for incorporated cities of Houston County were positive as all five incorporated cities showed an increase.

The City of Crockett, which has a 1.5 percent tax rate, will receive $142,742.32 in sales tax allocations. This is up from $128,095.77 received for the same tax period last year and reflects an 11.43 percent increase.

The City of Grapeland, which has a 1.0 percent tax rate, will realize $13,042.38 in sales tax allocation payments. This is up from the $9,092.71 received for the same tax period last year and reflects an incline of 43.43 percent.

The City of Kennard, which has a 1.0 percent tax rate, will acquire $2,301.60 in disbursements. This is up from the $2,076.61 taken in during the same tax period last year, indicating a 10.83 percent increase.

The City of Latexo, which also has a 1.0 percent tax rate, will procure $3,216.24 in sales tax allocations. This represents an increase from the $2,113.48          received for the same tax period last year and indicates a 52.17 percent incline.

The City of Lovelady, which has a 1.25 percent tax rate, will garner $6,060.37 in sales tax allocations. This is more than the $5,311.05 accrued for the same tax period last year and reflects an increase of 14.10 percent.

Anderson County, which has a 0.50 percent tax rate, will receive $216,405.90 in sales tax payments. This is an increase from $190,799.30 received for the same reporting period last year and indicates an incline of 13.42 percent.

The City of Elkhart, which has a 1.25 percent tax rate, will receive $15,542.87 in sales tax allocations. This is up from the $15,086.83 received for the same tax period last year and represents an increase of 3.02 percent.

The City of Palestine, which has a 1.50 percent tax rate, will receive $477,414.87 in sales tax allocations. This is up from the $455,767.53         received for the same tax period last year and reflects an incline of 4.74 percent.

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