Sales taxes take deep cut

By BRAD KELLAR
Herald-Banner Staff

May 08, 2008 12:51 am

— The local economy, which had been holding strong during a time of reported recession elsewhere in the country, slipped a bit during March.
After posting months of record sales tax revenue gains, the City of Greenville saw its take drop for this month significantly, according to the Texas Comptroller’s Office.
The Comptroller’s office reported the City of Greenville would receive a sales tax payment of $508,085.51 for the month, a decrease of about $59,000 (10.43 percent) from the record of $567,293.37 set one year ago. Greenville received almost $535,000 in 2006, more than $471,000 in May 2005, approximately $469,000 during May 2004, a little more than $435,000 in May 2003 and almost $500,000 in sales tax revenues during May 2002.
The May sales tax rebate payments represent the city's portion of sales taxes collected at local merchants in March and reported to the Comptroller's office in April.
The Greenville economy has been more than holding its own, with the city’s sales tax rebates regularly setting monthly records. The last slump in sales taxes was recorded in October of last year.
So far this fiscal year, the City of Greenville has received $2,336.025.71 in sales tax revenue, a decrease of just .87 percent from the $2,356,654.82 collected through May of last year.
The City of Greenville had collected $2.24 million through the same point in 2006, $2.19 million in sales tax revenue through May 2005, about $2.12 million through the same point in 2004, just over $2 million through May 2003 and approximately $2 million through May 2002.
Sales taxes are one of the two main sources of revenue, along with property taxes, which feed the city's general fund. A rededication of a percentage of the sales tax revenue goes toward the 4A economic development corporation.