Daily Progress, Jacksonville, TX

Local News

July 12, 2014

Sales tax revenue figures on track, city manager says

JACKSONVILLE — Despite being down 4.9 percent for the fiscal year on sales tax revenue, Jacksonville is right on track, according to City Manager Mo Raissi.

The allotment for June reflected the largest increase of the fiscal year with 12.4 percent, while July saw a slight increase.

"We are 2.4 percent for July. The last two months, June and July, have been positive, but the rest were minuses (negatives)," Raissi said.

However, Raissi is hopeful for a slight increase to be posted for the last two months of the fiscal year which ends Sept. 30.

"We have lots of construction, and we know it's just a matter of time before sales taxes pick back up," Raissi said.

The actual state of the current sales tax revenue – figures released by the State Comptroller's office – is difficult to gauge because the numbers posted for July are actually for May, as the report runs two months behind, he said.

Cities often budget increases into the fiscal year for sales tax, but Jacksonville is "very conservative" with the estimates, Raissi said.

"We have been very cautious with what we do. We either budget it for the same amount or lower, that way if there is a negative, it doesn't affect us as much," he said. "We are right on budget right now, though."

Henderson and Troup recently passed beer and wine sales, so this is likely a factor for this year's sales tax revenue gains, Raissi said.

In fact, in Henderson the city has posted positive sales tax revenue every month of this fiscal year. For July, the city posted a 25.7 percent increase, the highest of the year, so far.

Troup posted an increase of 25.6 percent for July, however the city's fiscal year has alternated between positive and negative revenue. Overall, Troup is down 9.4 percent for the fiscal year to date.

Henderson is up 11.2 percent for the fiscal year.

In nearby Rusk and Bullard, the percentages fluctuate. Rusk posted a 12.5 percent increase for June, but a negative 9.9 percent was posted for July.

Bullard posted an increase of 8.8 percent for July, but they have had negative sales tax revenue for the past three months.

However, both Rusk and Bullard are slightly in the positive for the fiscal year.

 

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