Sales tax revenue continues to decline

AUSTIN (KXAN) - The state collected less in sales tax revenue last month than this time last year, marking the eight month of decline, said Texas Comptroller Susan Combs.

February brought in $1.6 billion in sales tax revenue, down 8.8 percent compared to February 2009, Combs said.

The decline in revenue – reportedly seen most drastically in retail, oil and gas production and construction sales – means less money for Texas towns and counties.

Combs will soon send $271.3 million in March sales tax payments to Texas cities, down 6.8 percent compared to March 2009. Texas counties will receive sales tax payments of $24.4 million, down 11.2 percent compared to one year ago.

The 166 special purpose taxing districts around the state will get $15.8 million in sales tax revenue, down 8.4 percent compared to last March. Ten local transit systems will receive $92.7 million, down 4.7 percent.

State sales tax revenue payments for February and March made to local governments come from sales that occurred in January.

So far this calendar year, the comptroller reports that local sales tax allocations are down 8.4 percent compared to the first three months of 2009.

Further declines are expected in the coming term before a return to sales tax revenue growth later this year.