County sales tax decline slows

(AUSTIN)—Texas Comptroller Susan Combs today announced that the state collected $1.78 billion in sales tax revenue in May, a 0.1 percent increase compared to May 2009.

“Total sales tax collections have met or exceeded year ago levels for a second month in a row, following 14 months of decline. This may indicate that a bottom has been reached,” Combs said. “May sales tax collec- tions from retail trade, oil and gas, and restaurant activity outpaced those of May 2009. Remittances from other sectors, however, such as construction and manufacturing, fell below last year. While overall economic conditions and sales tax revenues appear to be stabilizing, there remains a risk of further deterioration.”

On Friday, Combs will send cities, counties, transit systems and special purpose taxing districts $437.3 million in June local sales tax allocations, down 0.9 percent compared to last June.

Combs will deliver June sales tax allocations of $292.6 million to Texas cities, down 1.5 percent compared to June 2009. So far this calendar year, city sales tax allocations are down 4 percent compared to the same time period last year. Texas counties will receive sales tax payments of $26.7 million, up 1 percent compared to last June. So far this year, sales tax allocations to counties are down 7.9 percent compared to 2009.

In addition, $18.6 million goes out to 169 special purpose taxing districts around the state, up 8.7 percent compared to last June. Ten local transit systems will receive $99.2 million in sales tax allocations, down 1.2 percent compared to a year ago.

June’s sales tax allocations represent April sales.