Comptroller to Send July Sales Tax Allocations to Cities and Counties |

By Will Johnson

Messenger Reporter

EAST TEXAS — If not already, cities and counties across the region will soon receive their July sales tax revenue disbursements from the state. In a July 7 press release, Texas Comptroller Glenn Hegar said he would send cities, counties, transit systems and special-use tax districts $1.03 billion in local sales tax allowances for the month of July, which is 15.3% more than in July 2021. .

As for what this means for area residents, Houston County Auditor Melissa Jeter previously explained how sales tax allowances affect property taxation in the county.

“Sales tax collections received by the Comptroller County are directly related to the ad valorem property tax reduction. When calculating the effective tax rate, actual taxes collected – not budgeted – are deducted from the value, which reduces the tax rate. The 1/2 cent county sales and use tax was implemented to reduce property tax. The money we get from sales tax is directly tied to the amount of the property tax rate reduction,” the auditor said.

“When anticipating revenue,” Jeter asserted, “the whole budget process is an educated guess. Houston County officials have always been very conservative and realistic, which has helped the county maintain a recommended fund balance level, even when other entities struggled and made cuts.

Cities in Texas will receive $655.6 million, up 14% from July 2021. Counties can anticipate sales tax allocations of $61.7 million, up 18.9% from to last year’s figures.

In addition, Hegar will send $92.6 million to 395 special purpose tax districts, up 26.6% from last year. The ten Texas transit system authorities will receive $220.3 million in sales tax allocations, up 14.2% from a year ago.

The sales tax allowances noted above represent “…sales made in May by businesses filing tax monthly.”

At the local level, Houston County saw an increase in allocations. The county has a tax rate of 0.50% and will receive $151,141.15, compared to $92,773.72 received for the same tax period last year, representing an increase of 62.91%. So far this year, Houston County has received $941,798.55 compared to last year’s total of $656,721.19, an increase of 43.4 percent.

Sales tax allowances for incorporated cities in Houston County were mostly negative, with three of five showing a decrease.

The Town of Crockett, which has a 1.5% tax rate, will receive $161,341.80 in sales tax allowances. This represents an increase from the $160,570.54 received for the same fiscal period last year and reflects an increase of 0.48%. Total annual payments to date show Crockett has raised $1,168,664.29 compared to last year’s total of $1,101,350.47, an increase of 6.11%.

The City of Grapeland, which has a tax rate of 1.0%, will realize $10,960.12 in sales tax allowance payments. This is down from the $10,967.76 received for the same fiscal period last year and reflects a decrease of 0.06%. Year-to-date numbers, however, show a slight increase from $88,929.44 received last year at this time to $91,192.80 raised so far this year, an increase of 2.54%.

The Town of Kennard, which has a 1.0% tax rate, will receive $2,285.81 in disbursements. This is down from the $3,130.10 collected during the same fiscal period last year, indicating a decrease of 26.97%. Year-to-date numbers, however, show an upward trend, from $17,426.29 collected last year at this time to $17,752.80 received so far this year. This means a 1.87% increase in sales tax payments.

The town of Latexo, which also has a 1.0% tax rate, will get $3,483.46 in sales tax allowances. This represents a decrease from the $3,895.25 received for the same tax period last year and indicates a decrease of 10.57%. However, year-to-date numbers show an increase from $23,079.32 (2021) to $23,846.78 (2022), representing a 3.32% increase in allocations.

The town of Lovelady, which has a tax rate of 1.25%, will receive $6,384.44 in sales tax allowances. This is more than the $5,870.78 accrued for the same tax period last year and reflects an increase of 8.74%. Year-to-date figures also show an increase from $44,711.79 to $49,623.29. This represents an increase of 10.98%.

Anderson County, which has a 0.50% tax rate, will receive $508,262.40 in sales tax payments. This is an increase from the $280,566.57 received for the same reporting period last year and indicates a slope of 81.15%. Year-to-date figures also show an upward trend, from $1,738,101.89 received last year at this time to $2,387,127.28 received so far this year. The increased allocation represents an expansion of 37.34%.

The Town of Elkhart, which has a tax rate of 1.25%, will receive $19,067.13 in sales tax allowances. This is an increase from the $16,325.53 received for the same fiscal period last year and represents an increase of 16.79%. Year-to-date numbers also show an increase from $108,930.52 (2021) to $126,820.78 (2022), reflecting a 16.42% slope in tax benefit payments.

The city of Palestine, which has a tax rate of 1.50%, will receive $1,201,660.77 in sales tax allowances. This represents an increase from the $431,580.57 received for the same fiscal period last year and reflects a slope of 178.43%. Year-to-date figures also show an increase from a total of $3,778,287.83 received last year at this time to $4,986,102.19 received so far this year, representing an increase of 31.96%.

Will Johnson can be contacted by email at [email protected].

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James V. Hayes