The city of Royse City enjoyed a surge in sales tax rebate revenue to start the fiscal year, based on a report issued by the Texas Comptroller’s Office.
In a statement issued Jan. 4, Comptroller Glenn Hegar said state sales tax revenue totaled $2.86 billion in December, 5 percent less than in December 2019.
The majority of December sales tax revenue is based on sales made in November and remitted to the agency in December.
“December sales tax collections continued recent trends, with receipts from most major economic sectors significantly down from a year ago,” Hegar said. “Retail trade was the principal exception, with the strongest gains coming from online general merchandisers, building materials and home improvement stores, warehouse clubs and supercenters and sporting goods and hobby stores.”
The final numbers for the 2020 holiday season won’t be in until next month, but Royse City recorded a significant jump in the amount of sales tax revenue it collected this month.
The report indicated the city would receive a sales tax payment of $410,719.89, representing an increase of 23.73 percent from the $331,931.55 collected during January 2020.
The report also represents the start of the 2020-21 fiscal year. The Comptroller’s office tracks 12-month sales totals between Nov. 1 and Oct. 31 annually, while cities track the sales between Oct. 1 and Sept. 30.
The full results of the holiday shopping season will be known when the next sales tax report is released in February.
Sales taxes are one of the two main sources of revenue, along with property taxes, which feed the city's general fund.