Combs announces sales tax revenue
City trying to catch up since glitch

Comptroller Susan Combs recently announced that the state collected $1.67 billion in sales tax revenue in December, up 6.7 percent compared to December 2005.

Combs sent cities, counties, transit systems and special purpose taxing districts their first sales tax allocations of 2007.

January payments to local governments total $417.8 million, up 4.2 percent compared to January 2006.

"It's good news that Texas cities, counties and other local entities continue to see a healthy increase in sales tax revenue, because of strong consumer spending," Combs said.

But Bullard is still trying to catch up after a glitch in the collecting system.

The office won't specify, but a local business was collecting more sales tax than necessary and the city is expected to pay it back.

City Manager Larry Morgan said the two offices have been cooperating, and a payment plan would be forthcoming.

But Combs also expects slower sales tax growth in the next two years.

"We may see factors like more moderate consumer spending, a cooling housing market and stabilizing oil and gas prices affecting sales taxes."

Combs sent January sales tax allocations of $282.3 million to Texas cities, up 8.5 percent compared to January 2006. Texas counties received sales tax payments of $25.3 million, up 10.3 percent compared to last January.

Another $12.7 million went to 115 special purpose taxing districts around the state, up 14.5 percent compared to last January.

Ten local transit systems received $97.3 million in sales tax allocations, down 8.7 percent compared to a year ago.

December state sales tax collections and January allocations to local governments represent sales that occurred in November.

For details of January sales tax payments to individual cities, counties, transit systems and special purpose districts, locate the Monthly Sales Tax Allocation Comparison Summary Reports on the Comptroller's Web site at www.window.state.tx.us/taxinfo/ allocsum/compsum.html.

The comptroller's next sales tax allocation will be made on Friday, Feb. 9.