Great retail December leads to large February sales tax allocations

Despite rumblings that the economy has been in a downturn, Gonzales County municipalities had one of their best retail sales months in a very long time in December 2024.

In fact, sales tax receipts were up by nearly 23.9 percent above the previous December, so sales tax allocations for municipalities were up by nearly $72,000 combined, according to figures released by Texas Comptroller Glenn Hegar’s office.

Hegar sent cities, counties, transit systems and special purpose districts $1.5 billion in local sales tax allocations for February, 9.4 percent more than in February 2024.

These allocations are based on sales made in December by businesses that report tax monthly; October, November and December sales by quarterly filers; and 2024 sales by businesses that report tax annually.

Combined sales tax allocations for the month of February 2025 for all four municipalities were $373,157.53 — up $71,879.27 above the $301,278.26 received in February 2024 and an increase of $67,944.97 from January’s combined sales tax allocation of $305,212.56.

All four municipalities in Gonzales County — Gonzales, Waelder and Smiley — saw an increase of more than 20 percent in sales tax allocations in February 2025 compared to February 2024.

Gonzales saw a 24.13 percent decrease, or $61,508.28 more, in sales tax allocations for February 2025 above the February 2024 allocation. The largest city in the county, which generates the lion’s share of sales tax revenue, received $316,348.23, compared to $254,840.06 in February 2024.

This is only the second time ever Gonzales has taken in more than $300,000 in a single month in sales tax allocations, coming just about $1,800 less than the $318,120.09 the city received in allocations in December 2022.

For the year, the city has received $575,841.66, up 9.43 percent or $49,669.45 more than the $526,172.21 Gonzales took in during the first two months of 2024.

Sales tax receipts also were up for Nixon, which received $40,830.04, up $6,830.80 or 20.09 percent more than the $33,999.24 received in February 2024 and $9,639.29 more than the $31,190.75 the city received in January. It is the most the city has received in sales tax allocations since November 2021.

For the year, the city has taken in $74,773.30, equal to 14.70 percent or $9,583.31 more than the $65,189.99 Nixon took in during the first two months of 2024.

Waelder received a total of $12,404.49, an increase of $2,759.13, or 28.6 percent, more than the $9,645.36 received in February 2024 and $3,498.11 more than the $8,906.38 received in January 2025. It was the fifth best month ever for Waelder.

For the year, the city has taken in $21,310.87, which is 3.66 percent or $753.34 more than the $20,557.53 the city had taken in up to this point last year.

Finally, Smiley’s sales tax receipts were $3,574.66, up $781.06 or 27.95 percent, above the $2,793.60 received in February 2024. This also is up from the $2,869.60 the city received in January. For the year, the city has received $6,444.26, which is 14.33 percent or $1,078.17 less than the $7,522.43 received through this point last year.

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

Gonzales County itself also receives a 0.5 percent sales and use tax and for the month of February 2025, the county received $278,018.21, which is $279,611.48, or 50.14 percent, less than the $557,629.69 received in February 2024 but $104,114.41 more than the $173,903.80 received in January.

For the year, the county has received $451,922.01, which is 41.13 percent or $315,761.02 less than the $767,683.03 the county took in during the first two months of 2024.