Despite Pandemic, LG Sales Tax Revenue Sets a Record

Americans “briskly increased spending at retailers” in August, The Wall Street Journal reported last week. Locally, the increase was far more than “brisk.”

According to the U.S. Commerce Department, sales at the nation’s retailers rose 0.7% last month. La Grange’s retail sales tax revenue this month, however, is up a far greater 14.5% from the same month last year.

For the first nine months of 2021, La Grange has received over $1.6 million in sales taxes, up 11.3% from the same period of 2020 and the highest ninemonth total ever.

In fact, five of Fayette County’s six towns have had doubledigit increases so far this year.

Round Top continues to lead the way. With record revenue of $246,054 so far this year, that’s a gain of 55.6% over the same period last year.

Carmine, also in the booming northern part of the county, is up 27.0% for the year.

La Grange, Fayetteville and Flatonia are all up by more than 10%. Schulenburg lags, but still has a 5.9% increase for the year.

Of the 18 other area towns tracked by the Record, none have had as great an increase as Round Top or Carmine. Among them, Bastrop’s increase is the greatest, at 21.8%. Four of the 18 are down compared to last year, while 14 are up.

In addition to cities with sales tax levies, nine area counties also have the optional local sales tax. Fayette County has collected $1.7 million so far this year, up 8.5% from this time last year. Five of the counties have had increases while four are down from 2020.

With $4.7 million so far this year, Bastrop County is by far the largest retail center. Washington County is next, with $2.6 million. Counties can levy sales taxes at the rate of one-half of one percent. Cities, on the other hand, can go as high as 2%.

Among area cities, Bastrop has collected $7.3 million so far this year and Brenham $5.8 million. Lockhart, Elgin and Sealy have each received over $2 million.