City sales tax down once again

Sales tax payments declined again in January for Central Texas cities. According to Leslie Browder, chief financial for the City of Austin, Austin saw a 13.1 percent decline for January as compared to January 2008. The difference is about $1.6 million.

 

A memo from Browder reveals that Round Rock sales tax revenues fell by more than 23 percent, while Sunset Valley and Bee Cave saw revenues down more than 9 percent each. Revenues for sales taxes fell in 14 of the top 20 Texas cities, according to Browder.

 

Dallas was down 10.9 percent; San Antonio down 4.6 percent; and Houston saw an increase of 4.5 percent.

 

City Manager Marc Ott has already taken steps to reduce city spending by $20 million, based on the decline in sales tax revenue. Last month, Browder and other officials were expecting sales taxes to fall by 6 percent for the entire fiscal year.

 

Browder said, “Our year-end estimate may still be achievable . . .although now (that seems) less likely in light of our last two sales tax payments.”