Two area cities see drop in Novem­ber sales-tax rev­enue

DeKalb of­fi­cial says amounts dif­fer from month to month, ex­pects ’18 was a good year

Texarkana Gazette - - FRONT PAGE - By Greg Bischof

Re­cent sales tax dis­tri­bu­tion records re­leased by the Texas State Comptrollers Of­fice sug­gest that two Bowie County cities hit a fi­nan­cial slump in the last cou­ple of months.

Ear­lier this month, the of­fice re­leased its monthly sales tax rev­enue records show­ing rev­enue dis­tri­bu­tion amounts to lo­cal cities and towns. Of the cities and towns in Bowie County, records in­di­cate that both DeKalb and Red­wa­ter ex­pe­ri­enced a sub­stan­tial drop in sales-tax rev­enue col­lected in Novem­ber com­pared with the amount col­lected in Novem­ber 2017.

DeKalb’s sales tax rev­enue col­lec­tion amounted to about 44 per­cent less. DeKalb col­lected $17,161.59 in sales tax rev­enue in Novem­ber 2018 com­pared with $30,661.27 in Novem­ber of 2017.

DeKalb City Ad­min­is­tra­tor Abbi Capps said the monthly records don’t paint an ac­cu­rate eco­nomic pic­ture of the city’s over­all an­nual sale tax col­lec­tion—one which ac­tu­ally shows pos­i­tive im­prove­ment for the city in re­cent times.

“I think 2019 will be a great year for sales tax col­lec­tion,”Capps said. “Just this last year we have had a new hard­ware store open up as well as a new cof­fee shop

and we’ve had a trailer busi­ness ex­pand its prop­erty.”

While DeKalb’s over­all sale-tax col­lec­tion for 2018 is still be­ing cal­cu­lated, Capps added that the city’s over­all salestax col­lec­tions grew by 12 per­cent from 2017. Capps added that the city’s gen­er­ated sales tax rev­enue can of­ten­times fluc­tu­ate from month to month.

“We have had sev­eral months where we col­lect a lot of sales-tax gen­er­ated rev­enue and other months where we didn’t gen­er­ate as much,” she said. “Novem­ber may have been one of those off-months. Over­all I be­lieve we did pretty good in sales tax rev­enue col­lec­tion for all of 2018 but we won’t re­ally know un­til we fin­ish cal­cu­lat­ing sales tax fig­ures for all of last year.

“We de­liver all of our sales tax in­for­ma­tion col­lected for one month over to the comptrollers of­fice on the 20th day of the fol­low­ing month.” (Last Novem­ber’s sales tax rev­enue in­take fig­ures were re­ported to the comptrollers of­fice Dec. 20 and sub­se­quently re­ported by the comptrollers of­fice ear­lier this month. De­cem­ber’s tax fig­ures haven’t been re­ported yet but they are pro­jected to be turned in by Jan. 20).

As for Red­wa­ter, the comptroller’s of­fice fig­ures for the same pe­riod show that city’s Novem­ber sales tax rev­enue col­lec­tions to have dropped by about 20 per­cent com­pared with the same month in 2017.

Comptroller records show that Red­wa­ter col­lected $5,013.o7 in sales-tax rev­enue in Novem­ber 2018 ccom­pa­red with $6,268.53 in Novem­ber 2017.

Red­wa­ter Mu­nic­i­pal Clerk Dessie Whelchel said the loss of Red­wa­ter Diner to a fire on Jan.19, 2018, could have had an ad­verse af­fect on the city’s sales=tax rev­enue col­lec­tion be­cause the busi­ness proved to be a pop­u­lar eatery.

As to whether or not the de­ci­sion, by vot­ers, to have both cities go wet in 2015 in or­der to ob­tain tax rev­enue has re­ally helped, Whelchel said that would ac­tu­ally be hard for any city to cal­cu­late be­cause the comptroller’s of­fice doesn’t specif­i­cally des­ig­nate which in­dus­tries sales-tax rev­enues are gen­er­ated by.

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