2009-03-18 / Front Page

State Sales Tax receipts down in February, but Raymondville sales up 13.8 percent

Texas Comptroller Susan Combs mailed checks for $433 million to cities that collect sales taxes at the end of February. The figures can be used to estimate the rise and fall of retail sales from month to month.

In February combined sales tax revenue totaled $1.7 billion, down 2.6 percent compared to February, 2008.

"Sales tax collections continued to struggle," Combs said.

"While state sales tax revenue has grown by 2.8 percent through the first half of fiscal 2009, further declines are expected as the economy continues to weaken," she added.

Raymondville was actually the bright spot in Rio Grande Valley cities sales tax collections for February. The city will receive $98,315.46 from the state as its part of the sales tax--a gain for the month of 13.8 percent. Meanwhile, for the first half of the fiscal year the city had received checks totaling $322,232.38 from the state, a gain of 3.25 percent.

Lyford had a big gain last month getting a check for $3,722.40, a gain of 42.1 percent but for the first half of the fiscal year that city is down 3.25 percent.

For the year other Valley cities are trending downward except for Harlingen where sales tax collections are up 3.08 percent for the year to date. Brownsvi11e is down in collections by 6.0 percent; and Mcllen sales tax collections are off by 3.25 percent.

Raymondville's sales tax gains may be the result of the poor economy which causes shoppers to rethink a trip to Harlingen and a tendency to shop at discounters such as Wal- Mart in difficult economic times.

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