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City’s sales tax revenues up more than 4 percent for FY2011

Tuesday, February 15, 2011 by Austin Monitor

The city’s share of sales tax revenues for December was up 1.4 percent over the same month a year earlier. That puts sales taxes for the first three months of fiscal 2011 up a total of 4.2 percent from 2010, according to information from Chief Financial Officer Leslie Browder. Austin received $16.1 million this month compared to $15.9 million last year.


Of the top 20 Texas cities, only one city saw declining sales tax revenue this month and eight cities experienced increases of more than 10 percent.  Among other major Texas cities, Fort Worth was up 12.5 percent; San Antonio, 6.9 percent; Dallas, 1.3 percent; and Houston, 0.8 percent.


Overall, the Austin/San Marcos MSA was up 7.1 percent for December. Round Rock was up 13.9 percent for the month; San Marcos, with a lot of retail, saw an increase of 7.7 percent; and Sunset Valley, which also has a lot of retail, had an increase of 9.1 percent. Sales tax collections in Bee Cave were up 15.4 percent and Capital Metro was up 1.4 percent for the month. 


Browder said that during February in 2010, Austin received a positive adjustment of $1.5 million associated with taxable sales made in previous periods, some going back as far as four years.  At that time, the city learned from the State Comptroller’s office that several businesses had been remitting taxes to another city that should have been sent to the City of Austin. This was discovered through their audit processes and a cumulative correction was made to Austin in the February 2010 payment.  Browder said that, exclusive of any adjustments, the monthly percentage change this month compared to same month last year would have been an increase of 7.7 percent.

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