Sales taxes down to start new year

AUSTIN (KXAN) - With a new year, the focus remains on an uphill fight for businesses and local governments to make money.

Overall, figures show people are shopping much less in Central Texas.

The latest sales tax figures for the city of Austin showed a shortfall of 8.7 percent in November.

The numbers fell even more in Round Rock at 21.8 percent, and business owners in both cities are fighting to keep people coming in their doors.

"I'd like to start the new year out right," said Jim Luedecke, owner of Mi Casa, a folk art and goods store on South Congress Avenue.

Luedecke opened on New Year's Day to get a jump start on sales, because the figures at Mi Casa over Christmas, weren't exactly the gift he was looking for.

"My figures are more like 30 to 40 percent off," he said.

When Luedecke has trouble moving items off the walls, the city of Austin doesn't make money either.

Sales tax figures over the 2010 fiscal year are down 8.5 percent in the city.

Austin budgeted for a 5 percent decrease in revenue for 2010, but still may have to cut some things during next year's budget talks.

"[We'll] try to outsource things like Trail of Lights and First Night which we started to do this year but we ran out of time," said Austin Mayor Lee Leffingwell.

Round Rock has even faced tougher times.

The city's budget relies 50 percent on sales taxes.

"It has been a year like most other places in the state of Texas and across the country where sales tax has dropped considerably," said Round Rock City Manager Jim Nuse.

City leaders will have to plan for $5 million to make up, Nuse said, when this budget year is over.

"We have planned very conservatively," he said.

Nuse said he hopes promotions like Shop the Rock to keep business in Round Rock during Christmas helped.

But they won't find out until figures are released in two weeks.

Meanwhile, opening Mi Casa New Year's day, Luedecke says, was the right move.

"It's been great," said Luedecke "It's been great."

And he hopes this trend continues for a much better year of sales.