Sales tax allocations fall for Gonzales and Nixon, but rise for Smiley and Waelder

While sales tax allocations for Gonzales and Nixon dropped this month, the city of Smiley received its largest-ever monthly allocation check from state — eclipsing its previous best by more than $6,200.

Sales tax allocations for the four municipalities in Gonzales County combined were up by just $613.27, or less than two-tenths of a percent above the amount received during April 2024, according to figures released by the Texas Comptroller Glenn Hegar’s office. That is better than the rest of the state fared.

Hegar announced he sent cities, counties, transit systems and special purpose districts $995.5 million in local sales tax allocations for April, 3.5 percent less than in April 2024. These allocations are based on sales made in February by businesses that report tax monthly.

It is unknown whether the lower sales tax collections in February for Gonzales and Nixon were influenced by purchasers’ fears of an escalating trade war between the United States and other countries over tariffs proposed and implemented by President Donald Trump.

Combined sales tax allocations for the month of April 2025 for all four municipalities were $295,604.19, up from the $294,990.92 received in April 2024. However, this was a decrease of $18,217.97 from what the cities received just last month based on sales made in January.

For the year, municipalities have gotten back $1,287,796.44, up $113,882.06, or 9.7 percent, above the $1,173,914.38 received through this point last year.

Smiley was not the only city to see an increase in sales tax allocations as Waelder also saw a double-digit percentage increase from March to April.

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.

The Texas Retail Outlook Survey for February 2025, released by the Federal Reserve Bank of Dallas, indicated a mixed outlook for the coming months. While some optimism persisted regarding future business activity and revenue, there was also a significant decline in optimism and increased uncertainty about the overall business outlook.

Economists continue anticipating household spending — especially among lower-to-median-income families — could be curtailed in coming months due to uncertainty over U.S. economic policy, inflation possibly overtaking wage growth and fears about a possible recession.

Gonzales saw a 2.49 percent decrease, or $6,239.27 less, in sales tax allocations for April 2025 above the April 2024 allocation. The largest city in the county, which generates the lion’s share of sales tax revenue, received $243,707.52, compared to $249,946.79 in April 2024.

For the year, the city has received $1,091,309.94, up 11.13 percent or $109,317.95 more than the $981,991.99 Gonzales took in during the first four months of 2024.

Sales tax receipts also were down for Nixon, which received $28,826.06, down $5,675.06, or 16.44 percent less than the $34,501.12 received in April 2024. For the year, the city has taken in $133,250.15, equal to 3.54 percent or $4,564.11 more than the $128,686.04 Nixon took in during the first four months of 2024.

Smiley’s sales tax receipts were a hefty $13,650.61, up $11,346.32 or 492.39 percent, above the $2,304.29 received in April 2024. It is possible that the giant increase could be attributed to an owed backpayment of sales tax allocations from the state. For the year, the city has received $23,273.35, which is 85.78 percent or $10,746.23 more than the $12,527.12 received through this point last year.

Finally, Waelder received a total of $9,420, an increase of $1,181.28, or 14.33 percent, more than the $8,238.72 received in April 2024. For the year, the city has taken in $39,693, which is 4.29 percent or $1,647.28 more than the $38,315.72 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 April 2025, the county received $199,096.75, which is 8.52 percent or $18,557.90 less than the $217,654.65 received in April 2024.

For the year, the county has received $1,207,632.52, which is 0.42 percent or $5,065.45 more than the $1,202,567.07 the county took in during the first four months of 2024.