Sales Tax Revenue Slumps in October

Maybe 2020 looks so bad because 2019 was actually so good, at least for local sales tax revenue.

The pandemic slump was particularly evident in this month’s sales tax rebates for the towns in Fayette County.

Of the six cities, five got smaller checks this month than the same month a year ago.

And half of the six are down for the first 10 months of this year combined.

Still, of the 24 area towns tracked by the Record, 21 have taken in more money this year than at this time in 2018. Until the Covid-19 pandemic set in, the region was economically booming.

Sales tax revenue in La Grange had jumped in the first

10 months of 2019 to $1.8 million from. $1.6 the same point in 2018. Now it’s dropped back down to about the same level as 2018.

This October’s checks were especially disappointing in Fayette County. La Grange’s rebate (for sales made in August and reported by merchants to the state in September) was down 9.2 percent from last October. Fayetteville’s was down 27.4 percent. Carmine’s was down 33.4 percent.

Only Schulenburg was “in the green” this month, up 36.2 percent from a year ago.

For the year to date, Schulenburg also has the biggest gain in the county – up 9.5 percent. Carmine is up 6.3 percent for the year, despite the big drop in October. And Flatonia is up 1.4 percent.

The other three towns are down this year. La Grange, with $1.6 million so far, is down 7.4 percent from $1.8 million a year ago.

Round Top is down 7.5 percent and Fayetteville is down 9.9 percent.

Nine counties in this are levy the optional sales tax. Three of them have seen dramatic gains while four are down from a year ago.

Neighboring Lee County has taken in over $2.2 million so far this year, compared to less than $1.3 this time a year ago. That’s a jump of 75.8 percent. That’s a huge year-to-date increase even though October’s check was down 63 percent from last October.

Colorado and Caldwell counties also are up dramatically – and by coincidence, up exactly the same percentage amount, 34.5 percent. Caldwell is home to the towns of Lockhart and Luling.

Also seeing gains are Bastrop County (up 13.9 percent) and Burleson County (up 6.2 percent).

Fayette County is down 1.0 percent. So far this year, the county has received $1.7 million in sales tax revenue.

Washington County is down 5.2 percent for the year, Gonzales County down 3.5 percent and Austin County down 11.0 percent.