Tiny Lyford is one of only a few south Texas communities that actually show an increase in retail sales for the first eight months of the current fiscal year.

Lyford shows a sales tax gain of 6.82 % while big brother Raymondville’s sales tax revenue is down 10.03 % for the same period. Other Rio Grande Valley examples are Brownsville, -0.41%, Harlingen, - 6.40% and McAllen, + 0.99%.

The entire state of Texas retail sales tax receipts are down -4.41 % for the current fiscal year.

All of the other cities mentioned, however, do a much bigger amount of retail business than does little Lyford and they a11 charge a 2¢ sales tax rate while Lyford charges just 1¢ sales tax.

Lyford voters will have a chance to increase the sales tax rate from l¢ to 2¢ per dollar of retail sales during the general election in November.

The State's sales tax is 6.25%,When Lyford's penny is added in the total sales tax increases to 7.25 % but, when Raymondville's 2¢ tax is added it comes out to 8.25 %, the rate charged in most Texas cities.

The State Comptroller rebates the individual cities their share of the taxes collected. To date this fiscal year Lyford has collected $ 14,486.57 while Raymondville has collected $542,903.36 a whopping disparity between the two communities.

If Lyford charged the same tax rate as Raymondville does, its total tax receipts for the fiscal year would double to $28,973.14, still only 5 percent of what Raymondville gets, but 100 percent more than what Lyford is now collecting.

Where does sales tax revenue go?

It goes to the general fund and it can be used for paving streets, installing street lights and for police and fire protection.

Lyford is smaller than Raymondville and as a result it lacks the retail stores the bigger community has such as Walmart, H-E-B, and the furniture, appliance and drug stores.

With a population of 2,011 in 2007, Lyford may never catch up with Raymondville’s 9,522 population.

But this year, 2010, the Lyford High School graduated 117 seniors to 1ll in Raymondville.

And under new city leadership Lyford is poised to have a new retail store on N. Bus. Hwy.77 when Family Dollar opens its doors in a couple of months.

Let's say that store does $1.5 million (wild guess) in its first year of operation. That figure would mean $15,000 in extra revenue to the community and if voters decide to raise the sales tax rate to 2¢, the city would have $30,000 more to use in local improvements.

Either way, Family Dollar will be welcomed by Lyford familes. Many of the items they now have to drive to Raymondville to buy will be available at home.