Tweet
Not only is this an indicator of improvement in the Texas economy, but it could indicate that the budgetary shortfall is smaller than thought. I guess we'll have to wait and see...
While policymakers in Austin begin trying to balance the state's books, another boost in sales tax collections statewide suggests an economic recovery is under way, officials said Wednesday.
Comptroller Susan Combs announced Wednesday that state sales tax revenue in December was $1.81 billion, up 9.4 percent from a year ago. "This marks the ninth consecutive month of year-over-year improvement in sales tax revenues, with increases posted across the board," Combs said. "There were increases in the oil and natural gas and manufacturing sectors reflecting recovering business spending. Sales tax in the retail trade and restaurant sectors were also up."
The latest figures were welcome news to officials in Arlington and Fort Worth. Arlington's sales tax revenues were $6.1 million, up 9 percent from December 2009. Fort Worth's take of almost $7.6 million represented a 4.8 percent increase.
"We're extremely excited but not surprised with all the great things going on in downtown" and with development throughout the city, said Horatio Porter, Fort Worth's budget director. The trend is expected to continue with help from the Super Bowl.
Porter said that the numbers give Fort Worth officials optimism about the forthcoming budget process. Last year, when city officials began evaluating how trends would affect resources and needs, property values were in decline and sales tax revenue stagnant.
While officials hold out hope that sales tax revenue meets forecast growth, they'll wait with anticipation for the release of property tax values sometime in May.
Property taxes account for more than 50 percent of the budget, while sales taxes make up 15 to 18 percent. "We may be able to increase our projections" with the boost in sales tax revenue, Porter said, but "the real barometer will be property values."
Comptroller Susan Combs announced Wednesday that state sales tax revenue in December was $1.81 billion, up 9.4 percent from a year ago. "This marks the ninth consecutive month of year-over-year improvement in sales tax revenues, with increases posted across the board," Combs said. "There were increases in the oil and natural gas and manufacturing sectors reflecting recovering business spending. Sales tax in the retail trade and restaurant sectors were also up."
The latest figures were welcome news to officials in Arlington and Fort Worth. Arlington's sales tax revenues were $6.1 million, up 9 percent from December 2009. Fort Worth's take of almost $7.6 million represented a 4.8 percent increase.
"We're extremely excited but not surprised with all the great things going on in downtown" and with development throughout the city, said Horatio Porter, Fort Worth's budget director. The trend is expected to continue with help from the Super Bowl.
Porter said that the numbers give Fort Worth officials optimism about the forthcoming budget process. Last year, when city officials began evaluating how trends would affect resources and needs, property values were in decline and sales tax revenue stagnant.
While officials hold out hope that sales tax revenue meets forecast growth, they'll wait with anticipation for the release of property tax values sometime in May.
Property taxes account for more than 50 percent of the budget, while sales taxes make up 15 to 18 percent. "We may be able to increase our projections" with the boost in sales tax revenue, Porter said, but "the real barometer will be property values."
Comment