Glen Rose continues to see increase in state sales tax allocation
GLEN ROSE — For the first time since 2008, the city of Glen Rose topped $130,000 in sales tax allocation revenue when Texas Comptroller Glenn Hegar released the figures earlier this month. The report shows the city brought in $130,155.64.
The figure put the city at $1,190,862.01 in sales tax allocation revenue for 2020 with one month remaining, and that is 3.9% better than this time last year at $1,145,323.49. The November allocation also marks the seventh consecutive month in which the city has brought in $100,000 or more in sales tax.
“We expected revenues to go down during the pandemic, but they didn’t,” Glen Rose City Administrator Michael Leamons said. “In discussing this with various individuals, the consensus is that during the early phases of the pandemic our tourist trade plummeted, but local residents shopping locally to avoid exposure to COVID-19 more than offset the lost tourist trade.”
On Nov. 12, Hegar sent cities, counties, transit systems and special purpose taxing districts throughout the state of Texas a total of $890.5 million, which is 4.8% higher than the previous year. The latest allocation is based on sales made in September by businesses that report months, and on sales mode in July, August and September by those who report quarterly.
“The city of Glen Rose is heavily dependent on sales tax revenues, more so than many municipalities. That is why our property tax rate is lower than many municipalities,” Leamons said. “For Fiscal Year 2020-21, the city budgeted $1,220,000 for sales tax revenues and $725,700 for property tax revenues. Far and away those are our primary sources of revenue for General Fund operations, so as you can see sales tax revenue is a vital component.”
In November 2019, the city received a payment of $104,688.03, making this year’s November payment 24.32% higher than the previous year.
For the year 2019, the city brought in a total of $1,257,914.02 and to surpass that mark this year, the city would need to bring in just more than $67,000.
Leamons also said late last year the city provided information to the State Comptroller's Office on annexations. The last time they had received an update on Glen Rose annexations was in 2012.
“The city collects sales tax on retail sales of natural gas and electricity, so all of the houses built in areas annexed since 2012 would have first become subject to those sales taxes several months after the Comptroller's Office updated their maps,” he said. “Those revenues would have started coming in sometime this year, perhaps during the second quarter. Those new revenues would account for some of the increase experienced in recent months.”
By comparison for the year, Hico is up 27.74%, Cleburne is up 6.55% and Stephenville is at -0.14%.