Sales Tax Shows Steady Growth Across Region

Slow but steady economic growth continues to be seen in 2025 for both Texas and the Fayette County area.

Acting State Comptroller Kelly Hancock distributed more than $1.3 billion to local governments in August as their share of taxes collected on retail sales. That’s 5.2% more than in August of last year.

Six out of Fayette County’s seven cities have seen increases for the eight month period from January to August. That not only boosts local governments, it also reflects growth for area businesses.

The sales tax is particularly important for the state and cities. Hancock says the sales tax accounts for 58% of all state tax revenue. July’s $4.2 billion in sales tax revenue for Texas compares to $433 million from the oil production tax and $178 million from the natural gas production tax.

Cities also relay mostly on the sales tax, while counties and school districts are funded more by property taxes. The current city budget expects nearly three times as much in sales tax ($1,838,872) as in property tax ($620,574).

La Grange received nearly a quarter million in August. Merchants pay the tax to the State Comptroller, who then rebates to local governments their respective shares.

So far in 2025, La Grange has received $1,851,989 in sales tax. That’s up 3.3% from $1,792,693 at this time last year.

Round Top and Fayetteville – both of which are impacted strongly by the seasonal antiques fairs – show the greatest growth locally. Round Top has taken in $371,216 so far this year, up 15.7% from a year ago. Fayetteville has received $107,594, an increase of 27.8%.

Schulenburg, Fayette County’s second largest city, has received $914,081 through August, up 1.6%. Flatonia is up 8.5%, Carmine is up 2.5% and Ellinger is down 1.1%.

Of the 18 other area towns tracked by the Record, all but two have seen increases this year. Bastrop, the region’s largest trade center, has taken in $8.7 million so far, up 4.5%, and Brenham, the second largest, stands at $7 million, up 4.6%.

Besides the cities, nine area counties levy the optional local sales tax. Six are up for the year; three are down.

Fayette County has received $2,276,692 so far this year from sales tax. That’s up 6.3% from last year. The county with the greatest gains is Austin, up 40.4% for the year to date. That may be due to some anomaly, however, since its monthly payment for August was up only 8.2%.