The state’s most recent monthly sales tax revenues dropped 11.2 percent from a year ago, the latest sign that the recession is infecting Texas.
The $1.57 billion collected in June, which reflects sales in May, is off from the $1.77 billion collected in the same month a year ago.
While the 2009 New Braunfels sales tax total is almost two percent less than than this past year’s, the city fares better than surrounding Texas towns, officials said Friday.
New Braunfels 2009 totals to date were about $9.5 million, falling just less than the 2008 sales tax total of about $9.7 million.
June 2009 totals of $1.387 million were up 1.2 percent from June 2008.
“New Braunfels totals for 2009 are almost even to last year's and most cities would love to have that,” said Debi Korinchock, chief financial officer for the city of New Braunfels. “We are holding our own with that sales tax. I can't say with any certainty why we’re in such good shape, but it might do with all of our consistent retail development and good economic management.”
Comal County’s receipts of $4.138 million are down 3.45 percent year to date from the same time the previous year.
The city of Schertz’s receipts were down 2 percent from its 2008 sales tax totals while Bulverde had an almost 3 percent decrease.
The 2009 sales tax total for Garden Ridge was down almost 16 percent this fiscal year.
Korinchock said property and home values in New Braunfels also were doing well, but the city awaited totals from the crucial 2009 summer months.
“Our challenge is that until we see numbers from June, July and August, we won't know if we did well as far as tourism, hotel business and all of money generated by our summer destination appeal,” Korinchock said. “However, people are still attracted to our city and the community here. I think those two things are what might also hold us up their for this summer.”
One budget official estimates that sales tax collections are $100 million below projections and could fall $550 million short when the fiscal year ends in two months. Eva DeLuna Castro of the nonpartisan Center for Public Policy Priorities says weak consumer spending is the cause of the shortfall.
Sales tax payments to local cities and counties also declined 8.8 percent for July to $426.7 million. The payments were based on May sales.
These numbers put Texas “firmly on the list with other states that have revenue problems,” DeLuna Castro said in Saturday’s Austin American-Statesman.
In a statement, Texas Comptroller Susan Combs said the figures also reflected strong tax collections from a year ago, when higher oil and gas prices spurred companies to buy more equipment.
The affluent Dallas-Fort Worth suburb of Southlake was among the hardest hit, seeing a 21.7 percent drop to $919,792. University of North Texas economist Bernard Weinstein said that reflected the trend of high-end retail stores feeling the recession more than other areas.
“Like it or not, we have joined the national recession,” Weinstein told the Fort Worth Star-Telegram. “It’s not surprising that people are spending less.”
Taxes on the sales of cars and trucks, projected to generate $2.6 billion this year, are down more than 22 percent from a year ago. The $4.4 billion in business taxes are off almost 4 percent.
However, Combs spokesman R.J. DeSilva said falling revenue was taken into account last month when the comptroller certified that the state would have enough money to cover the current budget and the next one.
DeSilva said the downturn in sales tax revenue is expected to last the remainder of the calendar year.
