La Grange, Schulenburg Show Strong Sales Growth

Nine months into 2023, La Grange has already collected more than $2 million in city sales tax revenue. And the county’s second largest city, Schulenburg, passed the $1 million mark this month. Both are all-time records for the nine-month period.

According to State Comptroller Glenn Hegar, the $687.6 million he sent to Texas cities in September brings the statewide year-to-date total up 5.4% from the same time last year. La Grange’s revenue has grown twice that fast this year, and Schulenburg’s three times as fast.

These gains are considerably above the rate of inflation, which the U.S. Labor Department pegs at 2.3% for the 12 months ended in July.

Local sales tax collections are generally considered a good indicator of overall economic activity in an area.

La Grange is up 11.5% for the year and Schulenburg up 17.9%. But two other Fayette County towns have shot up even faster.

Tiny Fayetteville has collected $170,856 so far this year, a much smaller dollar amount, but percentagewise, it’s up 81.3% for 2023 – a greater increase than any of the other 24 area towns tracked by the Record.

Round Top also has had a booming 2023. It’s collected $337,517 so far, up 18.8% from a year ago. Flatonia and Ellinger have had more modest gains – 7.7% for Flatonia and 4.4% for Ellinger. Carmine is the county’s only town to have a decrease this year.

All seven of the county’s incorporated cities levy the optional retail sales tax, which affects only sales made in their city limits. So does Fayette County, which gets half a cent on every dollar of taxable sales anywhere in the county.

So far this year, Fayette County has received just under $2.5 million in sales tax, up 9.4% from last year. Bastrop County, the area’s biggest retail center, has taken in $6.2 million, up 6.0% from last year. Washington County, the second biggest, stands at $3.5 million, up 11.7% from a year ago.