All Fayette Towns Still Seeing Sales Tax Gains

Round Top’s Growth Is Greatest in Region

Seven months into 2021, sales tax revenue is up in all six Fayette County towns that levy the local tax – five of them by double digits.

After receiving its July check from State Comptroller Glenn Hegar, Round Top’s total for the year is up more than 60% from the same period last year. That’s the biggest increase of any of the 24 area cities tracked by the Record.

Carmine is up by 22.8%, the second highest gain among the 24 towns.

So far this year, La Grange has received $1,285,780 in sales tax, amounting to a 12.2% rise from the same point in 2020. Its July check was for $187,100, up a little over $5,000 from last July’s.

Round Top’s revenue surge is probably more reflective of booming restaurant, bar and retail businesses rather than the twice-yearly antiques fairs.

Five years ago, Round Top hit $100,000 in seven months for the first time ever. This year it’s just shy of double that - $197,803 from January to July.

Still, the antiques fairs must be having an effect. Fayetteville and Carmine, the other two Fayette County towns most affected by the itinerate vendors, also are up a lot. Carmine is up 22.8% and Fayetteville is up 19.8%.

In the southern end of the county, Flatonia has increased by 10.4% from last year’s pace, while Schulenburg is up 4.9%.

Nine counties in this area levy the optional sales tax. With just over $1.2 million in revenue so far, Fayette ranks fourth among the nine in receipts. The county gets a tax of one-half of one percent on all taxable sales. The six cities, by comparison, tax at a rate of 1.5 percent.

Four of the nine area counties are down from last year’s pace. Bastrop and Caldwell have had the greatest increases, at about 17% each.

In his revenue estimate prepared for the Texas Legislature, Hegar foresees continued economic growth as the state moves out of the pandemic period.

“The Texas economy rebounded strongly during the spring as vaccination rates increased and the economy opened more fully, and we remain optimistic about growth in the near term as the state’s economy continues to return to prepandemic patterns,” Hegar said.

“There remain reasons to expect strong revenue collections in the coming months. We have seen exceptionally strong sales tax collections despite remittances from oil- and gas-related industry sectors remaining significantly below pre-pandemic levels. An increase in oil field activity resulting from the recent rise in oil prices could support continued sales tax growth. And personal savings remain elevated, providing potential support for continued strength in consumer spending.