Sales tax revenues remain healthy from post-holiday period

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The city of Gonzales saw an increase of more than 7.7 percent in sales tax allocations this month as the post-Christmas economy remained healthy for the county’s largest city, according to Texas Comptroller Glenn Hegar’s office.

Hegar announced he will send cities, counties, transit systems and special purpose districts $1 billion in local sales tax allocations for March, 9.9 percent more than in March 2022. These allocations are based on sales made in January by businesses that report tax monthly.

For the month of March 2023, Gonzales County municipalities received a combined $287,388.30 in sales tax allocations, up $26,218.98 or 10.04 percent more than the $261,119.32 received during March 2022.

These are the best numbers recorded for Gonzales County for March in eight years, which is impressive because January is usually the slowest month for retail sales and is one of the lowest spending months, according to the U.S. Census Bureau’s Annual Retail Trade Survey (ARTS). Typically, communities see a drop in retail sales in the first few months of the year, attributable to post-holiday buyers’ remorse when credit card bills for holiday spending come due.

For the year, county municipalities have received $950,132.178, an increase of $59,272.91 or 6.65 percent above the $890,859.26 received through the first three months of 2022.

Sales tax allocations for Gonzales, the largest city in the county which generates the lion’s share of sales tax revenue, were $244,508.72, up $17,506.22 or 7.71 percent above the $227,002.50 received during March 2022. It is the second-most the city has ever been allocated for the month of March behind only the $264,565.72 the city received in March 2015.

For the year, the city has received $807,214.53, up $33,679.28 or 4.35 percent, above the $773,535.25 received at this same point in 2022.

Sales tax receipts for Nixon were $31,317.44, up $6,914.10, or 28.33 percent, above the $24,403.34 received in March 2022. For the year, the city has received $103,001.22, up $13,343.45, or 14.88 percent, above the $89,65.77 received at this same point last year.

Waelder received a total of $9,544.32, up $2,858.77, or 42.76 percent, from the $6,685.55 the city received in March 2022. That is the best total ever for sales tax allocations for the month of March for the city of Waelder and the sixth-best month overall for the city. For the year, Waelder has received $30,887.41, up $11,427.49, or 58.72 percent, above the $19,459.92 received at this point in 2022.

Finally, Smiley’s sales tax receipts were just $1,967.82, down $1,060.11, or 35.01 percent, from the $3,027.93 received in March 2022. For the year, the city has received $9,029.01, up $822.69 or 10.02 percent above the $8,206.32 received in the first three months of 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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