City of Tyler continuing to see growth in sales tax

Published on Wednesday, 9 April 2014 23:36 - Written by Kelly Gooch, kgooch@tylerpaper.com

The city of Tyler continues to see incremental sales tax growth, City Manager Mark McDaniel said.

According to the Texas Comptroller’s Office, Tyler saw an 8.76 percent jump — from $2.72 million to $2.96 million — in its sales tax allocation this month compared to April 2013. Statewide, April local sales tax allocations totaled $554.5 million — a 6.2 percent increase compared to April 2013.

The numbers represent activity that took place two months prior, according to the Texas Comptroller’s Office.

Year to date, Tyler has seen a 15 percent increase compared to the same period last year.

McDaniel said sales tax allocation increases that occurred in March 2014 compared to March 2013 and February 2014 compared to February 2013 — 16.41 percent and 23.23 percent respectively — included audit adjustments from one taxpayer that date back to the early 2000s.

And without audit adjustments factored into this month’s 8.76 percent jump, the actual increase would be 7.83 percent, he said. That 7.83 percent increase does include beer and wine sales, which McDaniel said adds about $30,000 to $40,000 to sales tax numbers each month.

McDaniel said Tyler overall is seeing an average sales tax growth of 6.4 percent, which is lower than the average 7 percent growth that was occurring before the recession.

Still, he said, the city continues to see improvement. In the last six months, he said Tyler has seen incremental increases in almost every category. Major categories are Ag/Mining/Manufacturing, Service, Wholesalers, Retail, Accommodation and Food and Miscellaneous.

“We’re encouraged we’re continuing to see that incremental growth,” McDaniel said.

“When most are incrementally up, it’s encouraging because it looks like in general the overall economy is doing well,” he added.

He said the city heavily depends on sales tax, as sales tax is 47 percent of Tyler’s General Fund revenue, and he hopes the incremental sales tax growth continues into the next fiscal year.