Gonzales records second-best ever month in sales tax allocations

Gonzales County cities raked in sales tax allocations this month — with three of the four municipalities  receiving more than a third over what they had in the previous year at this time.

Texas Comptroller Glenn Hegar announced he sent cities, counties, transit systems and special purpose districts $1.06 billion in local sales tax allocations for October, 17.4 percent more than in October 2021. These allocations are based on sales made in August by businesses that report tax monthly.

For the month of October 2022, Gonzales County municipalities received a combined $333,104.18 in sales tax allocations, up $99,631.94 or nearly 42.7 percent more than the $233,472.24 received during October 2021. For the year, Gonzales County cities have received a combined $3,047795.91, up $595,748.49 or up nearly 24.3 percent from the $2,452,047.42 received through this point in time last year.

Sales tax allocations for Gonzales, the largest city in the county which generates the lion’s share of sales tax revenue, were $285,740.60 — up $86,577.86 or 43.47 percent above the $199,162.74 received last October. The month is Gonzales’ fourth-best ever and second-best overall when taking into account single months and not ones which include quarterly payments.

Gonzales’ best month ever for sales tax allocations was December 2014, when it received $296,859.70, followed by two months this year which both contained quarterly amounts — August 2022 ($291,879.05) and February 2022 ($285,808.35). This bodes very well for next month’s sales tax allocation, which will include quarterly amounts as well, and could possibly see Gonzales cross the $300,000 threshold for sales tax allocations for the first time ever.

Gonzales even collected more in sales tax for the month of August than it did the month before, when the city hosted Float Fest 2022.

“Historically, August is a good month as students, parents, and teachers get ready for the new school year. Some of our restaurants reported record sales for August and attribute it to families stopping in on their way to the coast or out and about getting ready for back to school.,” said Jennifer Kolbe, executive director of the Gonzales Economic Development Corporation.

Kolbe said the oil fields and improvement projects around town have had an impact as well.

“The Texas rig count has doubled since this time last year and we have seen slight increase in oil field service crews in the region,” she said. “Contractors working on infrastructure projects including the LCRA transmission line project and improvements to FM 794 can be seen eating and shopping around town.

“Residential and commercial remodeling jobs continue to boost sales in our hardware and home improvement firms. The city has ongoing construction projects Eggleston House and the Memorial Museum.”

She also spoke about the events the community hosted in August.

“Gonzales Main Street held a Back to School Bash where they collected more than $2,500 in school supplies,” she said. “In addition to the supplies, they purchased clothing for 67 youth and delivered stuffed back packs to more than 85 kids. JB Wells hosted CCA and NRA fundraisers and a gun show. The Region 6 rodeo attracted 245 contestants.

“The City and GEDC are grateful that we have a strong economic base and that despite inflation, we have the funds necessary to invest back into the community.”

Sales tax receipts for Nixon were $33,893.64, up $8,913.19, or 35.72 percent, above the $24,950.45 received in October 2021.

For the year, sales tax allocations are up $29,308.66 or 10.47 percent, with Nixon receiving $309,190.04 through 10 months of 2022, compared to $279,881.38 for the same period last year.

Waelder had the city’s second-best month ever for sales tax allocations, collecting a total of $11,234.05, up an inconceivable 55.04 percent or $3,988.30 above last October’s allocation of $7,245.75 (the city’s ninth-best month ever) and an increase of $5,051.24 or 81.7 percent above last month’s allocation of $6,182.81.

For the year, the sales tax allocation is up 4.63 percent or $3,041.03, from $65,557.40 received through the first 10 months of 2021 to the $68,598.43 received through the same period this year.

Finally, Smiley’s sales tax receipts were $2,265.89, an increase of 7.22 percent above the $2,113.30 allocated in October 2021. For the year, sales tax allocations are up $391.49, or 1.4 percent, from $27,821.91 at this point last year to $28,213.40 this year.

Two cities in Gonzales County — Gonzales and Nixon — collect a 1.5 percent sales tax rate, while Smiley and Waelder collect a 1 percent sales tax.