Two significant ‘adjustments’ by the state comptroller’s office put a major dent in the City of Kilgore’s sales tax revenues this month.

Accepting that, Kilgore City Manager Josh Selleck says, the sky’s not falling – actual collections are still in line with expectations.

This month’s revenues come from sales in September by businesses that report taxes monthly, and sales from July through September for quarterly filers. City Hall retains two-thirds of monthly allocations while the remainder benefits Kilgore Economic Development Corporation.

Before November’s check was cut, however, more than a quarter of the gross revenues were held back by the state. It puts Kilgore’s net at less than half of the same check in November 2018.

“Normally, they give us a heads-up on that, I’m not sure why they did not,” Selleck said Friday. “There were two major adjustments that equate to about $220,000 of total adjustment” between an audit adjustment and a prior-period adjustment.

Such adjustments aren’t out of the ordinary, but they’re rarely so substantial.

Current period collections were about $812,000, Selleck noted, still less than the $1.2 million check at the same time last year, but tracking at the same level as recent revenues.

“With that number in mind, we’re much closer to prior year and much more in line with our current budgetary expectations,” he added. The cause of the adjustments isn’t known at the moment, but more data is bound for City Hall: “As usual, we probably won’t be able to talk about what it is publicly. We will assess what the long-term impacts of it are and be able to brief whether this is a long-term negative or whether this is a small item that just stretches over multiple periods.

“Again, though, this kind of thing is why we budget so conservatively and why we never count our chickens before they hatch when it comes to sales tax.”


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