Sales tax allocations down for second straight month for Gonzales

Sales tax allocations for Gonzales dropped for the second-consecutive month as quarterly sales tax came in nearly two percent lower than anticipated, according to figures released by the Texas Comptroller Glenn Hegar’s office.

For the year, however, all four municipalities in Gonzales County remain at a pace above last year’s allocation rate as consumers begin adjusting to uncertainty involving trade negotiations and tariff announcements between the U.S. and other countries.

Texas Comptroller Glenn Hegar announced he will send cities, counties, transit systems and special purpose districts $1.3 billion in local sales tax allocations for May, 4.5 percent more than in May 2024.

These allocations are based on sales made in March by businesses that report tax monthly and sales made in January, February and March by quarterly filers.

Combined sales tax allocations for the month of May 2025 for all four municipalities were $338,528.14, down $2,840.94, or 0.08 percent, from the $341,369.08 received in May 2024. For the year, municipalities have gotten back $1,626,324.58, up $123,434.63, or 8.21 percent, above the $1,502,889.95 received through this point last year.

While both Gonzales and Smiley had decreases in their May sales tax allocation compared to last year, both Nixon and Waelder saw increases from last year to this year.

Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Cities can charge up to 1.5 percent and counties can charge 0.5 percent for a total of 8.25 percent.

Gonzales saw a 1.80 percent decrease, or $5,201.79 less, in sales tax allocations for May 2025 below the May 2024 allocation. The largest city in the county, which generates the lion’s share of sales tax revenue, received $282,552.96, compared to $287,754.75 in May 2024.

For the year, the city has received $1,373,86.90, up 8.19 percent or $104,116.16 more than the $1,269,746.74 Gonzales took in during the first five months of 2024.

Sales tax receipts are up for Nixon, which received $38,796.06, up $2,580.478, or 7.12 percent more than the $36,215.59 received in May 2024 and nearly $10,000 more than the $28,826.06 received in April 2025. For the year, the city has taken in $172,046.21, equal to 4.33 percent or $7,144.58 more than the $164,901.63 Nixon took in during the first five months of 2024.

Smiley’s sales tax receipts were down to $3,569.78, down $1,951.21 or 35.34 percent, below the $5,520.99 received in May 2024. For the year, the city has received $26,843.13, which is 48.73 percent or $8,795.02 more than the $18,048.11 received through this point last year.

Finally, Waelder received a total of $13,609.34, an increase of $1,731.59, or 14.57 percent, more than the $11,877.75 received in May 2024. For the year, the city has taken in $53,572.34, which is 67.3 percent or $3,378.87 more than the $50,193.47 the city had taken in up to 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 May 2025, the county received $203,914.74, which is 12.16 percent or $28,241.20 less than the $232,155.94 received in May 2024.

For the year, the county has received $1,411,547.26, which is 1.61 percent or $23,175.75 less than the $1,434,723.01 the county took in during the first five months of 2024.