Revenue from Sales Tax Dips in Fayette County

For the first time since the Covid pandemic, sales tax revenue for towns in Fayette County have dipped for the first quarter of the year.

Through March, five of the seven towns have experienced drops, according to figures from State Comptroller Glenn Hegar.

Sales tax revenue for the state as a whole is down slightly for the first three months of the year.

Round Top and Carmine are the only Fayette County towns that have bucked the trend. Round Top has collected nearly $107,000 in sales tax this year, up 3.6% from the same time last year. Carmine is up 9.9% from the same period a year ago.

Nine area counties also collect the optional local sales tax, and three of them are down from last year.

Fayette County is down 9.9% from 2023 levels, but part of that is due to last year being particularly good for the local economy. With more than three-quarters of a million dollars so far this year, first quarter collections for Fayette County are higher than any first quarter ever, with the exception of last year.

The same is true for La Grange, Schulenberg and Flatonia. Even though they are down compared with 2023, they are considerably higher than in any prior year.

La Grange has now received just over $650,000 in sales tax revenue. Schulenburg has topped $300,000 and Flatonia is just below $112,000.

Around the region, several local governments have received unusually high payments this past month. Because individual businesses’ tax reports are confidential, it isn’t possible to know exactly what caused the large increases. Often, however, it is the result of a past error being corrected.

For example, Hempstead got about half a million dollars during the first quarter of recent years, but this year reports nearly two million. It’s 2024 year to date revenue is up 218% from the same period last year. Shiner, which normally gets about $100,000 in the first quarter has received nearly $300,000 this year.

Gonzales County’s 2024 revenue is double last year’s receipts. For most local governments, however, the gains or losses have been moderate.

Six of the nine area counties have seen gains. Washington, Fayette and Burleson counties are all down.

Payments in March to local governments reflect sales made in January and reported by merchants to the state in February.