Record-setting month puts sales tax allocation over $3M for first time ever

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A record-setting month for sales tax allocations in December has helped Gonzales top the $3 million in yearly sales tax receipts for the first time ever.

Texas Comptroller Glenn Hegar announced he will send cities, counties, transit systems and special purpose districts $1.1 billion in local sales tax allocations for December, 12.4 percent more than in December 2021.

These allocations are based on sales made in October by businesses that report tax monthly.

For the month of December 2022, Gonzales County municipalities received a combined $361,220.48 in sales tax allocations, up $108,555.44 or nearly 43 percent more than the $252,665.04 received during December 2021. For the year, Gonzales County cities have received a combined $3,738,458.40, up $731,131.43 or up more than 24.3 percent from the $3,007,326.97 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 a record-high $318,120.09 — the first time the amount has exceeded $300,000 in any month. That is $108,138.69, or 51.49 percent, more than the $209,981.40 the city received last December and $32,878.14 more than $285,241.95 the city received just last month.

“Having a steady increase in sales tax revenue is good news for the community,” said Jennifer Kolbe, executive director for the Gonzales Economic Development Corporation (GEDC). “The Come and Take It celebration was successful. The weather was perfect for both Come And Take It and the Trunk or Treat Happy Fall Y’all Events.

“The oil patch has picked up little and we still have large infrastructure projects in town that bring construction crews during the week. We are fortunate that JB Wells Park and the golf course continue to attract visitors. When the cost of goods and services rises because of inflation, the sales tax income rises as well. We are grateful for the steady increase.”

For the year, Gonzales has received $3,245,156.08, which is $711,319, or 28.07 percent, more than the city received for the entirety of 2021. In fact, for the year 2022, Gonzales by itself received $237,829.11, or 7.9 percent, more than the $3,007,326.97 that all of Gonzales County (including Nixon, Smiley and Waelder) received in 2021!

Seven of the top eight months historically for Gonzales (when it comes to sales tax allocation) have occurred in 2022, with the last three months ranking fifth-best, sixth-best and now best overall. Gonzales’ previous best month ever for sales tax allocations was December 2014, when it received $296,859.70, so the new record set this month exceeded the previous best by $21,260.39!

“We hope that the increase is sustainable and want to be mindful that our spending does not exceed our income,” Kolbe said. “If we’ve learned anything from the ups and downs of the oil business, agricultural commodities and the pandemic is to not take anything for granted. When sales tax is up GEDC, and the city, can reinvest the money back into the community for projects such as Museum preservation and to fund grants to retain and expand our existing business base.”

Of the 1.5-cent sales tax rate levied by the city of Gonzales, half a cent goes for economic development to be managed by GEDC, which has used funds to pay bonds on the JB Wells Expo Center and lawsuit settlement; to develop the industrial park at 2521 Harwood Road; to help take care of city water needs; to fund airport expansion; and to provide grants to help Main Street and for business retention and expansion.

“We all realize there are huge infrastructure needs, and several large downtown buildings and public spaces that need reinvestment,” Kolbe said. “Having the sales tax revenue available for these purposes allows us to leverage private sector funds by reimbursing the property owner for a portion of the investment they make in a building.

“If the city were to repeal the sales tax, we would not be competitive. If the City wanted to compete for new investment, we would then have to fund projects out of the general fund, which is funded by property tax dollars. Our goal (at GEDC) is to minimize the impact on the general fund, leaving those funds to pay for fire and police protection, libraries and museums, water, sewer, electricity, and drainage projects.”

Sales tax receipts for Nixon were $31,365.58, down $3,591.20, or 10.27 percent, from the $34,956.78 received in December 2021 and down $1,964.06, or 5.9 percent, from the $33,329.64 received in November 2022.

For the year, sales tax allocations are up $13,376.96 or 3.71 percent, with Nixon receiving $373,885.26 for the 2022 calendar year, compared to $360,508.30 for all of 2021.

Waelder collected a total of $9,104.43 in sales tax allocations for December 2022, the city’s fourth best month ever. This is an increase of $3,172.61, or 53.48 percent, above the $5,931.82 received in December 2021 and an increase of $2,030.72, or 28.7 percent, above the $7,073.71 in sales tax allocations for November 2022.

For the year, Waelder set a new sales tax allocation record of $84,776.57, which is $6,898.85, or 8.85 percent, more than the $77,877.72 the city received in 2021, which had been the record for a year.

Finally, Smiley’s sales tax receipts were just $2,630.38, up 46.53 percent above the $1,795 received in December 2021, but $1,166.33 less than the $3,796.71 the city received in November 2022. For the year, sales tax allocations are down 1.32 percent from $35,104.64 collected in 2021 to the $34,640.49 collected for 2022.

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.

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