City sales tax rebates down

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December 11, 2009

By Rich Flowers News Editor The Athens Daily Review Fri Dec 11, 2009, 08:18 PM CST

The December sales tax allocation from State Comptroller Susan Combs office left Athens far behind 2008 as the sluggish economic trend continued.

December sales tax allocations to local governments represent sales that occurred in October.

The final check for the year brought $300,950 to the city’s coffers, an 8.3 percent dip from $328,482 in Dec. 2008. The total for the year was $4,228,290, down 7.7 percent from 2008. The final tally gave Athens its lowest yearly total since 2005 according to comptroller’s office records. Allocations for the city peaked in 2007 when the comptroller returned $4,611,343 to the city.

Combs had worse figures for the state as a whole. Combs sent Texas cities December sales tax allocations of $279.6 million, down 14.9 percent compared to December 2008.

“Sales tax collections, declining since February 2009, continued to be weak in November,” Combs stated in a news release. “Compared to a year ago, sales tax collections were down across all major sectors of the Texas economy, including oil and natural gas production, construction, manufacturing and retail trade.”

Gun Barrel City, which has been a leader in economic and population growth saw its smallest monthly allocation since Dec. 2007. The city’s $4,228,290 for the year was down 7.6 percent from 2008. The drop marked the first annual decrease for the city in at least 25 years.

Local sales tax numbers for small towns can see large fluctuations in allocation percentages due to a recent tax increase or the gain or loss of businesses. Double-digit percentage increases in December were recorded in Caney City, Coffee City, Eustace, Log Cabin, Malakoff and Murchison.

The next local sales tax allocation will be made on Friday, Jan. 8.

City sales tax allocations for August of 2009 are shown in numbers of dollars, followed by percentage increase or decrease:

• Athens, 300,950 (-8.38 percent)

• Berryville, 1,009 (-20.33 percent)

• Brownsboro, 9,281 (-9.31 percent)

• Caney City, 2,645 (10.16 percent)

• Chandler, 27,777 (-11.45 percent)

• Coffee City, 37,637 (69.18 percent)

• Eustace, 5,097 ( 32.04 percent)

• Gun Barrel City, 210,326 (-17.96 percent)

• Log Cabin, 12,338 (1039 percent)

• Malakoff, 37,043 (40.17 percent)

• Murchison, 2,021 (40.17 percent)

• Payne Springs, 4,540 (8.19 percent)

• Poynor, 1,366 ( 8.19 percent)

• Seven Points, 33,275 (-3.74 percent)

• Tool, 4,172 (-12.46 percent)

• Trinidad, 5,149 (5.27 percent)

• County total, 695,536 (-5.49 percent)

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