March sales tax allocation drops

From sales made in March 2022

From sales made in March 2022

Port Aransas reported the first drop in monthly sales tax allocations in recent history.

Several other cities in the region also experienced reductions in their share of sales taxes collected, including Corpus Christi, Aransas Pass and Ingleside. Allocations to Ingleside have for months trailed behind last year.

Texas Comptroller Glenn Hegar last week sent cities, counties, transit systems and special purpose taxing districts $1.2 billion in local sales tax allocations for May, overall 11.8 percent more than in May 2021.

These allocations are based on sales made in March by businesses that report tax monthly and on sales made in January, February and March by quarterly filers.

“Among sectors driven by consumer spending, the strongest growth in receipts was in arts and recreation services, with receipts from sporting events, music and other live entertainment, and fitness clubs far exceeding previous year levels. Receipts from restaurants continued to exhibit double-digit growth as well,” Hegar said in a news release.

“Receipts from retail trade remain elevated, though only a little higher than a year ago when retail spending surged after the end of COVID restrictions. Slowing growth in receipts from retail trade may signal shifts in consumer spending back toward pre-pandemic patterns. Growth in spending in segments that had benefited during the pandemic appeared to stall, as receipts from home improvement and furniture stores changed little from a year ago, while receipts from sporting goods and hobby stores declined.”

The Port Aransas allocation for the reporting period was down by 3.98 percent, but for the year to date, allocations are above 2021 by 11.97 percent.

Corpus Christi and Aransas Pass allocations for March sales were down by 1.93 percent and 4.19 percent. Both cities’ allocations for the year to date are up by 10.30 percent and 4.89 percent, respectively.

Ingleside allocations have been running consistently behind 2021, and for this reporting period, the allocation was down by 1.07 percent and down for the year to date by 5.37 percent.

Rockport allocations were up by 6.57 percent for the reporting period and by 12.07 percent for the year to date.

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