City sales tax allocations continue to rise
GLEN ROSE — Four months into 2021, the city of Glen Rose is just less than 30% higher in sales tax allocation over the previous year.
Earlier this month, Texas Comptroller Glenn Hegar distributed $101,103.73 to the city — completing one full year of a monthly allocation in six figures.
"I hope the sales tax uptrend continues, but I don't have a crystal ball,” Glen Rose City Administrator Michael Leamons said. “I’ve lived long enough to see oil booms and oil busts, real estate booms and real estate busts, hi-tech booms and hi-tech busts.”
The fear was the COVID-19 pandemic would cut into the city’s allocation, but it has been the opposite.
“I am very happy about the sales tax trends, and how businesses have rebounded from a very difficult year,” Leamons said.
For the year, the city has received $489,188.12 in sales tax, up 29.31% from this time last year ($378,292.16).
“Higher sales tax revenues are a bonus to the city. Generally, when working on the budget for sales tax revenue, we plan for them to come in at an amount equal to the past 12 months,” Leamons said. “Since those revenues are highly influenced by forces outside of our control, it is always a welcome sight when those revenues are trending higher than expected.”
At the same time, the city can add to its coffers in case of an emergency.
“An economic downturn can hit suddenly,” Leamons said. “Higher-than-expected revenues in the first half of the year provide a cushion in case some kind of economic shock hits in the second half of the year.”
Earlier this month, Hegar sent cities, counties, transit systems and special purpose taxing districts $677.3 million for the month, which was 3.5% less than in April 2020. The allocations are based on sales made in February for businesses that report monthly tax.
In comparison, Hico is up 6.36% for April, but it is still down -8.08% for the year. Granbury was up 3.63% and up 8.60% for the year, while Stephenville is down 1.14% but still stands at a 19.22% increase for the year, and Cleburne was up 5.74% in April in, bringing its yearly total up to 9.79%.