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New Braunfels sales tax continues to rebound from pandemic | Community alert

By on October 29, 2021 0

New Braunfels continues to see a trend of a double-digit increase in sales tax revenue, compared to numbers depressed by last year’s pandemic, according to data from the Texas Comptroller’s Office.

Sales tax revenue from August transactions received this month by the city increased by more than $ 900,000, or about 30.4%, from the same month last year.

City officials will find a check from the Comptroller’s Office for nearly $ 3.9 million in the mailbox this month. The city has collected approximately $ 3 million in August 2020 sales.

Year-over-year increases in most tax revenue continue to be affected by base effects: The pandemic has wiped out tax revenue a year ago from this year’s revenue.

“This certainly complements a much higher level of growth than expected for our summer months,” Jared Werner, the city’s chief financial officer, told members of the board of directors of the New Braunfels Economic Development Corporation last week. “If you look at the average growth period from May to August, which is the indefinite tourist season, the average growth rate during this period for the sales tax was 25.8%, certainly exceeding anything we could have predicted. or wait. “

In the first 11 months of fiscal 2020, sales tax revenue increased 20.1% compared to the same period the previous year.

Retail sales tax collections rose 19% in August, Werner said, wholesale markets were up 24%, and food, mainly fast food and sit-down restaurants, was up 23%.

Werner added that general service sales tax revenue, which includes businesses and tourism industries that have suffered the most from the pandemic, rose 57% in August.

“This is the continuation of a trend for these companies over the past few months,” he said.

Tax revenues from manufacturing companies rose 61%, according to Werner.

2tarts Bakery employee Maddy Herbert waits for a customer in the store on Friday, October 29, 2021 in New Braunfels. 2tarts has seen an increase in sales over the past year, but still has not returned to pre-pandemic levels.

Ashley Landerman, co-owner of 2tarts Bakery in New Braunfels, said the business was “on the rise”, but not quite at pre-pandemic levels. She estimates that the bakery has seen a 25% increase in activity compared to last year.

“We’re still trying to get to where we were,” Landerman said. “We are still pursuing sales before the pandemic because we have cut back. We are still a viable business. We just had to cut back. Plus, hiring is really tough – it hurts us to be able to fully open. We want to reopen the dining room and extend our opening hours until late at night, which we were known for. Once we have done that, we will be closer to our goal.

Comal County also saw a double-digit increase in sales tax revenue and will receive around $ 1.95 million this month from August sales, up about 31.9% from one year ago.

Bulverde will receive $ 214,493 this month, an increase of about 13.7% over last year, and Garden Ridge will receive $ 43,979, up 32.1% from the same month there is one year old.

The comptroller’s office will send cities, counties, transit systems, and special-purpose tax districts $ 906.6 million in local sales tax allocations for October, up 20.6% than it did. a year ago.

According to Comptroller Glenn Hegar, state tax revenue stood at $ 3.15 billion in September, 22.3% more than a year ago. The majority of September sales tax revenue is based on sales made in August and remitted to the agency in September.

Compared to September 2019, sales tax collections increased by 14.8%.

“September state sales tax collections rebounded sharply above last year’s pandemic depression level while also sharply exceeding pre-pandemic levels,” Hegar said. “Tax revenues from all major economic sectors have increased double-digit percentages from a year ago, indicating strong spending by businesses and consumers.

Despite persistent shortages of building materials, chemicals, semiconductors and other critical inputs due to weather and pandemic-induced supply chain disruptions, said Hegar, Sectors Revenue construction, manufacturing and wholesale trade rose sharply.

Collections from the oil and gas mining sector have nearly doubled from a year ago, as drilling activity continued to increase while remaining well below pre-pandemic levels.

“In the retail sector, the rapid growth in revenues of big box retailers continued, which rose sharply during the shutdown period of last year, while the revenues of department stores in shopping malls increased. increased moderately, Hager said. “Among the more specialty retailers, the fastest growing revenue comes from clothing stores and electronics and appliance stores, as has been the case in recent months. Revenues for general online merchants continued to grow moderately from high levels last year.

Hegar added that part of the consumption of alcoholic beverages has reverted to on-site consumption in bars and restaurants since the lifting of pandemic restrictions, food and beverage store revenues have stopped growing, although ‘they remain above pre-pandemic levels.

Total sales tax revenue for the three months ending September increased 17.8% from the same period a year ago and 14.9% from 2019.

Texas collected the following revenue from other significant taxes, most of which were up sharply from a year ago due to base effects:

• Motor vehicle sales and leasing taxes – $ 547 million, up 2% from September 2020 and 26% from September 2019.

• Fuel taxes – $ 321 million, up 9% from September 2020 and down 1% from September 2019.

• Tax on oil production – $ 392 million, up 72% from September 2020 and 17% from September 2019.

• Tax on natural gas production – $ 252 million, the highest monthly amount since October 2008, up 255% from September 2020 and 155% from September 2019.

• Hotel occupancy tax – $ 51 million, up 50% from September 2020 and down 5% from September 2019.

• Taxes on alcoholic beverages – $ 122 million, up 56% from September 2020 and 4% from September 2019.

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