Sales Tax returns for May


Sales taxes: down!

 Sales tax returns for May 2008 were down locally in every community except Yantis. But, the far more important element in the sales tax story is that returns are down for the state as a whole compared with May of last year. Most experts and analysts speculate that the rising cost of fuel and the rising prices of food items where transportation is a major part of the cost is causing consumers to allocate more and more of their disposable income to gasoline.

Hawkins sales tax collections in May were $20,788.52, or 18.73 percent below the figure a year ago when $25,582.67 was returned to the city. All cities in Wood County except Yantis reflected downturns for May as compared to May a year ago. The same is true of sales taxes collected by merchants in unincorporated areas of the county such as Holly Lake. There the downturn was 8.79 percent.

For the year-to-date after five months of returns, Hawkins is now 6.24 percent below the level achieved in the first five months of 2007. Year-to-date through five month's returns in 2008, Hawkins collections total $88,593.01 compared with $94,497.09 at this same time in 2007.

The sales tax funds are collected by local merchants, sent to the Texas Comptroller along with the state's six and-a-quarter cents tax on each dollar of retail purchase. Hawkins' local portion-one-and-one-half cents/dollar-is then returned two months later (March collections returned in May). Merchants in the unincorporated county areas collect a half-cent sales tax on each dollar sale with the local portion going into the county's general fund.

Hawkins returns of $20,788.52 are distributed to the two budgets supported by the sales tax, with approximately $13,859 deposited into the city's general fund and the remaining $6,929.50, representing a half-cent sales tax, into the Hawkins Community Development Corporation budget.
Comparative figures for sales tax returns for the month of May (as collected in March) for each city and the county follow with commentary furnished by Gary McKinley, executive director of the Wood County Industrial Commission.

Last Updated on Thursday, 16 April 2009 16:22