Kilgore sales tax allocations down 35 percent

Kilgore's sales tax allocation check in November dropped by 25 percent and more than $266,000 compared to the same period last year, but the city manager said nobody is panicking.

On Friday the city received a check from the state comptroller’s office for $788,506.30, down 25.25 percent from the $1,054,872.31 received last November. The city's sales tax rate is 1.5 percent.

However, Jeff Howell, city manager, said the city council set its budget for fiscal year 2009-10 based on 2005-06 sales tax revenues and, to date, the city is ahead of those figures. He noted Kilgore received approximately $720,000 in sales tax revenue in November 2005, compared to $788,000 this week.

“We are still in a good financial position at this point and will continue to provide services as usual,” Howell said. “The fact that we set our overall sales tax revenue budget relative to the same period in 2005-2006, then we’re really right where we expected to be, even though it is down from last year.”

Between August and December 2008, the city’s tax rebate was more than $1 million each month, Howell said.

To date this year, the city has received $9,312,810.14 in sales tax allocations, down 11.91 percent from the same period last year when it received $10,572,550.63. Last month the city received a check $670,445.19, down 35.71 percent from the $1,042,867.60 received in October 2008.

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.

Texas Comptroller Susan Combs says the state collected $1.52 billion in sales tax revenue in October, down 12.8 percent compared to October 2008.

“Declining sales tax collections, which began in February, have continued with October’s collections,” Combs said. “Tax collections are down in major sectors of the economy, including retail trade, oil and natural gas and construction.”

On Friday Combs distributed $500.7 million in November sales tax rebates to cities, counties, transit systems and special purpose taxing districts. Local sales tax allocations are down 8.7 percent compared to November 2008.

She sent Texas cities $342.6 million in sales tax allocations, down 8.3 percent compared to November 2008. So far this calendar year, city sales tax allocations are down 4.2 percent compared to the same time period last year.

Texas counties received November sales tax allocations of $28.2 million, down 14.5 percent compared to one year ago. the calendar year-to-date, county sales tax allocations are running 3.7 percent below 2008 revenues.

LONGVIEW RECEIVED an allocation check for $2,433,869.66. This is 10.64 percent less than the $2,723,879.14 received this same period last year. Longview's tax rate is also 1.5 percent.

White Oak is down 39.66 percent with $64,856.41 received this month compared to $107,499.65 in November 2008. The city's sales tax rate is 1.5 percent.

Gladewater's check this month for $71,709.81 is down 25.05 percent from the $95,679.01 earned during the same reporting period last year. Its sales tax rate is also 1.5 percent.

Lakeport's sales tax rebate of $7,763.92 this month is 18.56 percent higher than the $6,548.44 received last November. Lakeport's sales tax rate is 1 percent.

The total allocation to all of the cities within the county, which also includes Clarksville City, Warren City and Easton, is $3,371,319.70, down 15.57 percent from the November 2008 total of $3,993,158.96.

In Henderson, where the sales tax rate is 2 percent, the tax rebate was $388,639.96, down 27.52 percent from the $536,239.39 received during this same period last year.

Overton, with a 1.5 percent tax rate, received a check for $22,820.74, down 38.41 percent from last November’s check for $27,057.40.

Tyler is number 20 on the comptroller's list of Top 20 Texas cities for sales tax revenue earnings. During this payment period, Tyler received $3,067,006.65, down 12.87 percent from the same period last year when the city received a check for $3,520,336.36. The city's sales tax rate is 1.5 percent.

Both Smith and Gregg counties collect sales taxes of .5 percent on retail sales in unincorporated areas. Rusk County does not levy a sales tax in unincorporated areas.

Gregg County sales tax revenues are down 23.87 percent with a sales tax revenue return of $1,035,808,07 this period, compared to last year’s $1,360,653.05. Thus far this year the county’s tax rebate is down 4.97 percent compared to last year.

Smith County received an allocation of $1,152,652.16, down 21.84 percent from the $1,474,766.76 received last November. The county’s total this year is down 7.87 percent compared to last year.

The 153 special purpose taxing districts around the state received $19.4 million in sales tax, down 5.2 percent compared to last November. Ten local transit systems received $110.4 million in November sales tax rebates, down 8.7 percent compared to a year ago.

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.