As Lindale’s share of sales tax revenue continues its upward trend, city officials stress the overall picture remains healthy, with the latest numbers from Texas Comptroller Glenn Hegar’s office bearing this out.
Comparing Lindale’s sales tax figures from this time a year ago (i.e. May, 2017 to May, 2018), Hegar’s chart shows a 1.42 percent drop. In this category since January, 2018 Lindale’s share of the sales tax pie has been in the negative category, but has increased from nearly minus 6 percent to this latest 1.42 percent.
However, payments from May, 2018 ($239,181.36) compared to May, 2017 ($228,081.49) show an increase of 4.86 percent.
The latter figures prove local merchants have been doing steady business, as usual, Lindale Mayor Jeff Daugherty said.
“You can check just about any year you want and we’ve been up at the end of each year,’’ he said. “The figures could fluctuate during the year but overall, the numbers remain good.’’
Daugherty echoed the thoughts of Lindale Economic Development Corporation President Susan Gill, who cited bad weather, the need for a replacement bridge spanning FM 849 earlier in the year and other unforeseen factors as to why month-to-month figures might be down.
“These (earlier) figures are based from the time when the 849 bridge was out,’’ she said. “Collin Street Bakery, Kidd-Jones and Subway – along with the other businesses in that area – suffered from a lack of traffic, especially the drivers coming from the interstate.’’
On Nov. 14, a truck carrying an oversized tank vessel load, crashed into the bridge. Shortly thereafter, Texas Department of Transportation workers closed the bridge and engineers were sent to the area to evaluate the area for structural damage.
Weather, too, has been a factor. Continuous rain late in 2017 plus ice and snow in January, 2018 contributed to the downturn.
“This means there are no building supplies being delivered,’’ Gills said.
Other factors, Gill said, include the construction of homes outside the Lindale city limits and not being able to capture sales taxes from online sales.
“In 2017, we had a phenomenal year,’’ she said. “This year there still a lot of things to look forward to, including lots of new businesses which have been open since the first of the year.’’
But taking the recent past into consideration, Gill and the LEDC are confident in the bounce back potential of the Lindale sales tax figures.
“It’s important to remember that 2017 was a phenomenal year,’’ she said. “There’s no reason to believe the rest of this year won’t be as well.’’
Across Texas, Hegar sales tax revenue totaled $2.76 billion in May, 10.2 percent more than in May 2017.
“Strong growth in sales tax revenue was apparent across all major economic sectors,” Hegar said. “While the most rapid growth was in remittances from the construction and oil- and gas-related sectors, significant gains also came from information services, restaurants and retail trade.”
Total sales tax revenue for the three months ending in May 2018 was up 10.4 percent compared to the same period a year ago. Sales tax revenue is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.
Revenue from other major taxes on motor vehicle sales and rentals, motor fuel and oil and natural gas production also rose in May 2018:
-- motor vehicle sales and rental taxes — $424 million, up 11.7 percent from May 2017;
-- motor fuel taxes — $309.9 million, up 1.8 percent from May 2017; and
-- oil and natural gas production taxes — $416.5 million, up 56 percent from May 2017.
Smith County sales tax figures:
ARP: $37,995.73 for 2017; $36,661.35 for 2018, down 3.41 percent
BULLARD: $243,727.13 for 2017; $230,974.38 for 2018, down 5.23 percent
LINDALE: $1,450,886.99 for 2017; $1,430,228.55 for 2018, down 1.42 percent
NEW CHAPEL HILL: $7,543.94 for 2017; $7,953.48 for 2018, up 5.42 percent
NOONDAY: $64,344.57 for 2017; $75,789.84 for 2018, up 17.78 percent
TROUP: $194,679.16 for 2017; $185,733.22 for 2018, down 4.59 percent
TYLER: $20,210,473.28 for 2017; $21,511,058.39 for 2018, up 6.43 percent
WHITEHOUSE: $387,934.37 for 2017; $417,328.80 for 2018, up 7.57 percent
WINONA: $72,679.14 for 2017; $75,068.92 for 2018, up 3.28 percent.