DATA: 2020 sales tax revenue stays strong in Keller, Roanoke, Northeast Fort Worth
Texas Comptroller Glenn Hegar distributed local sales tax grants of $ 510.7 million to cities in Texas on December 11, 2.5% less than the grants for December 2019, according to a press release.
Roanoke received nearly 22% more grants in December than in 2019, while Keller saw a more modest increase of 6.3%. Fort Worth was the only one of the three cities that generated less sales tax revenue than the previous year.
How much a city makes in sales tax revenue can indicate economic trends, and this year’s trends have been shaped by the COVID-19 pandemic.
The top five cities in sales tax revenue, including Dallas and Fort Worth, received less than 2019. Fort Worth, which raised $ 13.7 million in December up from $ 165 million so far, received 0.15% less than last year . However, Dallas fared worse, losing 2.49% in sales tax revenue compared to 2019.
Smaller towns with smaller budgets like Keller, Roanoke, and nearby Colleyville and Southlake have seen their revenues grow despite the pandemic. Keller’s annual revenue increased 12.53% to $ 12.7 million, including $ 1 million in December. Roanoke was allocated nearly $ 2 million in December, with year-to-date revenue of over $ 18 million, up 9.35% from last year.
Sales taxes are levied by the state, which receives 6.25% of the state tax per sale. Cities are allowed to charge an additional sales tax of up to 2%, and the auditor’s office distributes this locally determined portion once a month. Allocations distributed in December are based on sales made in October, according to the auditor’s press release.
Total Texas city allocations for 2020 were virtually unchanged from the previous year, increasing 0.4%.