By Jay Ermis
HUNTSVILLE — The cities of Huntsville and New Waverly and Walker County saw declines in sales tax revenue received in December compared to a year ago in 2008, while Riverside had a huge increase.
In addition, Huntsville was among seven area cities showing large declines in sales tax revenue in December compared to 2008, according to a sales tax comparison chart compiled by city finance director Winston Duke and his staff.
Sales tax revenue is a major contributor to Huntsville’s annual income along withproperty taxes.
December sales tax allocations to local governments represent October sales reported to the state comptroller’s office.
Huntsville received $424,499 in December compared to $525,038 in 2008, reflecting a decrease of 19.15 percent.
In November 2009, Huntsville received $606,492 compared to $636,333 in 2008 for a minus 4.69 percent.
In October to start the City of Huntsville’s 2009-10 fiscal year, the city received $479,613 in sales tax revenue compared to $437,261, reflecting an increase of 9.69 and was the only one of the seven area cities showing an increase over the same time the previous year.
In November 2007, the city received $626,720 in tax revenue; $591,709 in 2006; $554,343 in 2005; and $538,805 in 2004.
According to the state comptroller’s allocation summary, to date in 2009 Huntsville has received $6,358,335 in sales tax revenue compared to $6,123,707 at the same time in 2008, showing an increase of 3.83 percent.
“The economy,” was Duke’s answer to the large decline for Huntsville. “We don’t get any reasons. All we know is trying to interpret a number. We haven’t heard anything from businesses.
“That number in December is October business. We might hear something in January about December collections, even though our January will be for November. It’s been inconsistent, even for the past year, although we haven’t seen that kind of ups and downs.
“That is the biggest decline since I have been here. I usually know that areas like this will lag in recovery and recessions like this six to eight months.
“The only time I have seen a big dip like this is when the gas prices rose and in August 2008 that was the only time I have seen anything like this.”
Huntsville finished fiscal year 2008-09 with $6.5 million in sales tax revenue, reflecting an increase of 8.7 percent over 2007-08, when it received $6.2 million.
Duke said the city also receives a sales tax analysis report from a consulting firm and the forecast shows the city to receive an estimated $6,635,000 for 2009-10.
Walker County received $172,142 in December compared to $191,134 in 2008, reflecting a decrease of 9.93 percent.
The City of Riverside showed a 266.48 percent increase in sales tax revenue received in December of $38,515 compared to $10,509 at the same time last year.
The City of New Waverly showed a decrease of 37.10 percent in December, receiving $12,487 compared to $19,855 at the same time last year.
Other area cities receiving less tax revenue were Conroe, $1.9 million in December compared to $2.7 million in 2008, minus 30.37 percent; College Station, $1.33 million compared to $1.49 million, minus 10.60 percent; Bryan, $931,557 compared to $1.76 million, minus 20.80 percent; Brenham, $370,491 compared to $444,251, minus 16.60 percent; Lufkin, $869,048 compared to $11.09 million, minus 20.31 percent; Nacogdoches, $371,246 compared to $422,816, minus 12.19.
In 2009 payments to date, Walker County has received $2,404,497 compared to $2,280,084 in payments to date in 2008, showing an increase of 5.45 percent.
In 2009 payments to date, Riverside has received $182,304 compared to $120,320, showing an increase of 51.51 percent.
New Waverly has received $225,893 in 2009 payments to date compared to $141,081 in 2008 payments to date, reflecting an increase of 60.11 percent.
According to the state comptroller’s office, the state collected $1.70 billion in sales tax in November, down 14.4 percent compared to November 2008.
The state sent cities, counties, special purpose districts and transit systems $417.1 million in December sales tax allocations, down 14.6 percent compared to last December.
The final sales tax allocation of 2009 brings local sales tax revenue for the year to $5.6 billion, 5.1 percent less than in 2008.
The state comptroller’s office sent Texas cities December sales tax allocations of $279.6 million, down 14.9 percent compared to December 2008.
Counties’ December sales tax allocations totaled $24.6 million, down 20.2 percent compared to December 2008.
