COVID-19 causes drop in May sales use tax



 

 

On May 1, Texas Comptroller Glenn Hegar announced that state sales tax revenue totaled $2.58 billion in April, 9.3% less than in April 2019. This is the steepest decline since January 2010.

The majority of April sales tax revenue is based on sales made in March and remitted to the agency in April. Widespread social distancing requirements were not in place across much of the state until late March, meaning the impact of those measures affected only a portion of sales tax remittances in April. Next month’s remittances likely will show steeper declines compared to a year ago, as the effects of both the shutting of businesses related to COVID-19 and plummeting oil prices were manifested throughout April.

Local sales tax revenue

For the month of May, four of five Atascosa County cities saw a decrease in sales tax revenue compared to last year. Much of that decline is due to the COVID-19 guidelines set forth by the state in March to shut down all non-essential businesses.

Pleasanton is still doing well considering their revenue only went down $40,000 from May 2019.

“We are pleasantly surprised and cautiously optimistic,” said Pleasanton Mayor Travis Hall. “We will know the true numbers in 60-90 days of how COVID-19 has impacted our city with businesses being closed.”

The City of Charlotte was the only city to see some increase this year, going up from $26,850.31 in May 2019 to $27,989.25.

“We have had a lot of out-of-towners coming from all over to our Family Dollar during the COVID-19 pandemic,” said Charlotte City Secretary Gracie Garcia. “That’s the only reason we have been receiving a slight increase in revenue still.”

However, the city has lost over $40,000 in revenue from March to May.

Atascosa County, which typically sees the highest sales tax revenue when compared to the surrounding counties of Bee, Frio, Karnes and Medina, saw a decrease this May compared to May 2019.

Please see accompanying charts for full numbers and comparisons.

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