Sales tax collections show economy nearly recovered

The city of Gonzales brought in its highest sales tax allocation in March since 2020 — a good sign the local economy has almost fully recovered from the impact of COVID-19.

Texas Comptroller Glenn Hegar announced he was sending cities, counties, transit systems and special purpose taxing districts $913.3 million in local sales tax allocations for March, 19.8 percent more than in March 2021.

These allocations are based on sales made in January by businesses that report tax monthly. This month is usually one of the lowest-performing months for sales taxes since it is the month immediately following the Christmas shopping season.

For the month of March 2022, Gonzales County municipalities received a combined $261,119.32 in sales tax allocations, up $40,558.84, or 18.39 percent from the $220,560.48 received during March 2021. For the year, Gonzales County cities have received a combined $890,859.36, up $ 175,952.90 or  24.61 percent from the $714,906.46 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 $227.002.50 — up $40,954.01, or 22.01 percent, above the $186,048.49 received last March. The amount just $9,741.65 below the $236,744.15 received in March 2020, just as COVID-19 started to force the shuttering of businesses and the implementation of mandates designed to battle the pandemic.

For the year, Gonzales has received $773.535.25, an increase of $166,375.9, or 27.4 percent, above the $607,159.35 the city received through this point last year.

Sales tax receipts for Nixon were down $3,022.18 or 11.01 percent from $27,425.52 allocated in March 2021 to the $24,403.34 allocated for this month. For the year, sales tax allocations are up $7,114.16 or 8.61 with Nixon receiving $89,657.77 through three months of 2022, compared to $82,543.61 for the same period last year.

Waelder saw sales tax receipts of $6,685.55 this month, an increase of $1,492.88 or 28.74 percent above last March’s allocation of $5,192.67. It is the most the city has ever received in sales tax allocations for the month of March and the 12th best month of all time for the city.

For the year, the sales tax allocation remains up 18.87 percent or $3,089.25, from $16,370.67 received through the first three months of 2021 to the $19,459.92 received through the same period this year.

Finally, Smiley’s sales tax receipts were $3,027.93 this month, an increase of $1,134.13 or 59.88 percent above last March’s allocation of $1,893.80 — the largest percentage increase for any municipality in Gonzales County.

For the year, sales tax allocations are down 7.09 percent from $8,206.32 at this point last year to $8,832.83 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.