Alcohol sales boosting sales tax returns
Chandler, Malakoff and Trinidad all voted to allow the sale of beer and wine during the 2012 election and two of the three cities noticed a double-digit percent increase in sales tax returns.
Chandler posted a 16.48 percent increase from $49,019.76 to $57,100.84 while Trinidad posted a 32.57 percent increase.
“I’m sure that the increase is related to the beer and wine sales. The last two months have been in the 16-17 percent range, but I think a little more time will tell the real story,” Chandler City Administrator Jim Moffeit said. “Using sales tax numbers from 2012, we would see a 16 percent increase of $76,000. I think the longer we go the better it will get.”
Malakoff dropped 12.63 percent, a little over $4,000, while the cities that traditionally were the hot spots for alcohol noticed a steep decline in sales.
Coffee City was the only completely “wet” city in Henderson County for several years and it posted a 72.11 percent decrease in revenue this period. It dropped from $59,594.87 in 2012 to $16,615.21 this period following both Chandler and Tyler going “wet” at the end of 2012.
Murchison posted a 4.18 percent increase, $4,288.44 to $4,467.91, while Brownsboro had a 47.14 percent decrease, $23,153.94 to $12,239.06.
On the year, Brownsboro has dropped 23.63 percent while Murchison is up 20.77 percent and Chandler is up 6.09 percent. Chandler’s monthly return was the largest in the city’s history.
Texas Comptroller Susan Combs said that state sales tax revenue in April was $2.15 billion, up 3.9 percent compared to April 2012.
“Sales tax collections were up in a range of sectors from construction and manufacturing to restaurants,” Combs said. “As expected, the rate of growth in state sales tax revenue is moderating compared to double-digit growth rates we recently experienced.”
Combs will send cities, counties, transit systems and special purpose taxing districts their May local sales tax allocations totaling $668.5 million, up 5.6 percent compared to May 2012.
The sales tax figures represent monthly sales made in March as well as January, February and March sales by businesses that report tax quarterly.
For details of May sales tax allocations to individual cities, counties, transit systems and special purpose districts, locate the Monthly Sales Tax Allocation Comparison Summary Reports on the Comptroller’s Web site at www.window.state.tx.us/taxinfo/ allocsum/compsum.html.