Sales tax revenues in Hays County rebounded substantially in July, according to allocation figures released by the state comptroller’s office, indicating that the regional retail economy is making a comeback.
The July sales tax collections for Hays County and its cities combined for $2,887,061.82, up 10.7 percent from $2,606,449.53 in July 2009. Between them, Hays County and its municipalities have collected $21,144,690.14 so far in 2010, up from $20,058,634.97 at the same point in 2009, a 5.4 percent increase.
The July sales tax checks from the Texas Comptroller’s office account for retail sales in May.
San Marcos received a check for $1,453,694.88, up 9.91 percent from an allocation of $1,322,597.55 in July 2009. For the year, San Marcos has collected $10,777,451.96, up 3.59 percent from $10,403,153.26 at the same point in 2009.
San Marcos set its all-time record in the July sales tax allocation. However, the city is still $201,371 below budgeted projections for this point in the fiscal year.
For the fiscal year, which began in October 2009 and includes the December 2009 sales tax allocation, the city is 1.38 percent ahead from the first nine months of the last fiscal year.
“The increases that San Marcos and other cities are showing indicate continued improvement in the area economy,” said Mayor Susan Narvaiz. “However, we are closely monitoring revenues and expenditures as we face these uncertain times.”
Sales tax revenues from retail sales account for 48.1 of the city’s general fund revenues. The city maintains a fund balance of 34.2 percent of its general fund budget.
The city’s previous July sales tax record came in 2008, when it collected $1,341,194.41 in July. The city also set its yearly sales tax record in 2008 with $18,382,874.13 in sales tax collectons. However, a slide began in December of that year (representing October 2008 sales), when sales tax collections fell to just less that $1.3 million.
That month’s report put the city on a run during which its collections in 11 of 14 months were below collections for the same month a year earlier. Now, the city has increased its sales tax collections from the same month a year earlier in five of the last six months. In three of those months, the city set its all-time record. The one month when the city came in lower than the same month a year earlier was June, when collections of $1,322,953.68 fell behind June 2009 collections of $1,385,868.03.
Overall, Hays County municipalities experienced an 11.15 percent sales tax increase in July from the same month a year earlier, bringing them 3.78 percent overall from a year earlier. County cities collected a total of $2,105,773.43 in July and have brought in $15,148,379.92 for the year.
The big winner in July was Kyle, which collected $250,891.42, up 32.1 percent from $189,912.11 in July 2009. For the year, Kyle is up 16.01 percent, to $1,682,905.25 from $1,450,562.79 at the same point in 2009. As recently as 2005, Kyle collected $1,238,971.67 for the entire year.
Bolstered by the development of two million square feet of retail space at Kyle Parkway and Interstate-35 since the start of 2009, Kyle will make a bid for $3 million in sales tax collections for the first time in 2010. Kyle has set monthly sales tax records in six of the last seven months.
Meanwhile, Buda appears headed for its third straight year of sales tax declines. Though the city experienced an uptick of 3.99 percent in July, to $281,514.05 from $270,709.63, the city still is 3.84 percent down from a year earlier. The city has collected $1,835,310.78 so far in 2010, down from $1,908,666.61 at the same point in 2009.
Annual sales tax collections for Buda have declined from a high of $3,480,821.88 in 2007 to $3,250,526.51 in 2008 and $3,223,015.32 in 2009.
It’s likely that commercial development in Kyle has taken a bite out of Buda sales tax collections. Both cities are composed mostly of residents who commute to Austin for work. However, Buda, by far the smaller of the two cities, is between Austin and Kyle. Being closer to Austin, Buda beat Kyle to retail development, and Kyle residents often shopped in Buda before Kyle opened numerous retailers in the last 18 months. Kyle also opened an H-E-B Plus! in July 2007, long after Buda opened an H-E-B in December 2000.
Sales tax collections in Wimberley for July were $37,721.27, down 3.14 percent from $38,944.57 in July 2009. For the year, Wimberley sales tax collections are down 8.55 percent, to $313,635.73 in 2010 from $342,900.27 in 2009.
Dripping Springs sales taxes were up 16.7 percent in July, reaching $71,135.51 in July 2010 after collections of $60,953.99 in July 2009. For the year, Dripping Springs collections are up 10.81 percent to $468,413.27 from $422,680.80 at the same point in 2009.
The sales taxes allocation for Hays County reached $781,288.39 in July, up 9.74 percent from July 2009, when the county brought in $711,923.40. For the year, Hays County has brought in $5,662,310.22, up 3.66 percent from $5,462,289.19 at the same point in 2009.
Most other cities near Hays County also received larger sales tax checks in July 2010 than in July 2009. Round Rock was up 19.26 percent, San Antonio was up 15.79 percent, Lockhart was up 15.28 percent, Seguin was up 14.67, New Braunfels was up 9.57 percent, Austin was up 8.34 percent, Schertz was up 5.27 percent, Luling was up 4.31 percent, and Bastrop was up 2.99 percent.Email | Print