This months’ sales tax revenue allocation from the State of Texas is closer to October 2014 than the same month last year, but Kilgore City Manager Josh Selleck remains unfazed by a year-to-year drop of almost $150,000.

“It is where it should be,” Selleck said Thursday.

The first revenue check of Fiscal Year 2019-2020 shows an almost 15 percent decline compared to October 2018, but that check included a substantial gain on the prior year – far more than can be sustained.

“Last year was one of those months where it was up so high that we knew immediately there had to be one-time funds in it,” Selleck added. “That’s not a month we should be comparing ourselves to.”

Rather, post-economic recovery and accounting for a small handful of businesses showing large, periodic gains, the $873,099.02 allocation from Texas Comptroller Glenn Hegar’s office is the new par for the course.

Last month, Kilgore City Council members officially adopted a $6.1 million sales tax revenue projection for FY2020, the same as FY19, and Selleck puts the first check of the new fiscal year within the right range.

“The $873,000 we’re seeing this year is more in line with what we should be expecting.”

Statewide, Hegar announced Wednesday he’s sending cities, counties, transit systems and special purpose taxing districts $773.1 million in local sales tax allocations for October. It’s a 5.1 percent increase compared to October 2018.

October allocations are based on sales made in August by businesses that report their taxes monthly. In Kilgore, City Hall gets two-thirds of the revenue; the remainder benefits Kilgore Economic Development Corporation.


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