Sales Tax Shows Smaller Towns In Area Challenged by Economy

“The rich get richer, and the poor get poorer,” or so the saying goes.

The same seems to be true for the retail economies of area towns this year. Seven months into 2026, the four largest Fayette County towns all have increased their sales tax revenue. The three smallest towns all have declined.

Something similar has happened with other towns in the area, too. Of the 18 area cities tracked by the Record, among the top half, eight of the nine larger towns have seen increases. Of the bottom half, six of that nine have decreased.

In some cases, the gains reflect new stores and restaurants being opened in cities, resulting in higher sales tax collections. In others, it may be that financially strapped consumers are going out of town to seek lower prices.

Regardless, few of the changes this year have been dramatic. Of the 25 tracked towns, only four have seen double-digit sales tax gains in 2026. These are Sealy, Giddings, Caldwell and Luling. The rest of the gains have been under 10%.

Sealy has seen a spectacular gain this year, garnering just over $4 million in seven months. That’s up nearly 75% from this time last year. One possible factor in Sealy’s boom is construction starting on a huge new Sika plant in February. According to a press release from Gov. Greg Abbott, Sika is investing some $90 million in the plant that will manufacture PVC singleply roofing membranes. Such projects often generate large retail sales during the construction phase. Since sales tax reports are considered confidential, the exact reason for Sealy’s increase isn’t known. It’s also fueling the county’s revenue too, though. Austin County is up 28.9% for the year.

The growth in Luling’s sales tax revenue may still be resulting from the big Bucee’s on I-10.

When it opened in 2024, it was the biggest Buc-ee’s in the world, although a couple of even bigger ones have now opened. Although the main town of Luling is about two miles north of I-10, the city limits were extended to include the area where both Buc-ee’s and Love’s built travel stores.

Here in Fayette County, La Grange has seen a 2.5% increase so far this year, Schulenburg is up 6.7%, Round Top is up 7.7% and Flatonia up 1.6%. Carmine and Ellinger are down slightly, while Fayetteville is still feeling the effects of having to pay back an overpayment that the state made last year. That error results in Fayetteville’s tax rebate being reduced month by month until the overage has been corrected.

New businesses are likely responsible for Bastrop’s strong growth, both for the city and the county. The town of Bastrop has received over $8 million in sales tax so far this year, a 9.6% increase. But the county is up by more than 33%. Much attention has been drawn to Elon Musk’s projects in northeastern Bastrop County, not far from the big Tesla plant in Travis County. The Bastrop County holdings range from the Boring Company and SpaceX headquarters to a bodega and a housing development.

Several other developments also are getting public scrutiny in Bastrop County. Three major data center projects have been proposed. The largest of them is in the Cedar Creek area.