June Sales Tax Increases Compared To Last Year

For the second consecutive month, the city of Van saw a dramatic increase in its sales tax payment compared to the payment received during the same period last year. Although the state average saw a 5.2 percent decrease compared to 2008.

The city’s June allocation was $70,570.87 compared to the 2008 payment of $45,051.12.

"I believe this increase is largely due to gas prices remaining high and people are just growing accustomed to shopping locally whenever they can," said Van City Administrator Gary McDaniel.

McDaniel said that the city is also starting to see some sales tax revenue from Sonic.

Texas Comptroller Susan Combs recently announced that the state collected $1.77 billion in sales tax revenue in May, a 5.2 percent decrease compared to May 2008.

"Weakness throughout most sectors of the economy resulted in a significant decrease in May sales tax collections. While year-to-date sales tax revenue is up 0.5 percent for state fiscal 2009, further declines are expected this year," said Combs.

Combs sent cities, counties, transit systems and special purpose taxing districts $441.1 million in June local sales tax allocations, down 3.9 percent compared to last June.

June’s sales tax allocations represent sales that occurred in April.