Cities of Brownwood and Early See Significant Increases in Sales Tax Allocations

Texas State Comptroller Glenn Hegar released sales tax allocation numbers for March which showed unusual increases in Brown County cities of Early and Brownwood.   The report shows most cities in Brown County with an increase.  Brownwood, Early, and Bangs were each up on this month’s sale tax allocations with a decrease for the city of Blanket.

The growth in Early was up by a significant number, 156.17%.  Brownwood also increased a good portion with an 18.77% increase.

Early City Administrator Tony Aaron stated that he noted the jump in this month’s allocation and contacted the Texas Comptroller’s Office to see what had caused the change.

“I was basically told that it is an anomaly, to consider it a one-time payment,” said Aaron.  He explained that the Comptroller’s office could not give specific answers due to privacy laws, but that it was payments from a company or companies that do business in and out of Early.  He stated possibly this could be a late payment from companies that make quarterly payments, which were due in mid-January and could be related to some holiday sales.

Aaron stated that although the payment was an increase of more than $125,000 than the comparable period in 2014, it was both good and bad for the city.

“While having the increase is great, there’s also a negative side to it.  This anomaly throws off our sales tax numbers for the current year and next year we will actually show a drop in sales taxes for this period,” said Aaron.  “We requested a detailed report so that we can determine what portion is this one-time payment and what could be actual growth.”

Brownwood Economic Development Corporation Director Emily Crawford explained that part of the City of Brownwood’s increase was due to an unknown audit collection by the state.

Statewide, sales tax allocations were also increased.

“The growth in sales tax revenues was led by business spending,” Hegar said. “Receipts from the manufacturing and wholesale trade sectors were up sharply. In spite of the recent decline in crude oil prices, tax receipts from the oil and natural gas mining sector also grew strongly.

Hegar will send cities, counties, transit systems and special purpose taxing districts their February local sales tax allocations totaling $873.1 million, up 8.9 percent compared to February 2014.

Texas Comptroller Glenn Hegar said that state sales tax revenue in February was $2.46 billion, up 11.7 percent compared to February 2014.

“This marks the 59th consecutive month of year-over-year growth — an encouraging sign that Texas’ diverse economic engine continues to drive spending growth in households and businesses all over the state,” Hegar said.

“Receipts from manufacturing and wholesale and retail trade showed strong growth,” Hegar said. “And despite the decline in oil and natural gas prices, tax receipts from the oil and natural gas sector were once again up sharply over last year.”

Hegar will send cities, counties, transit systems and special purpose taxing districts their March local sales tax allocations totaling $590.1 million, up 6.7 percent compared to March 2014.