Sales tax collections — the revenues that fuel local municipalities’ operations — fell statewide 11.4% in November, from $310 million to $274.5 million, according to the Texas State Comptroller’s Office.
Some areas fared worse than others; Houston (18.5% decline), Corpus Christi (16.6%) and Beaumont (24%) were especially hard hit as was Irving (15% following an 18% drop in October). Dallas was down 20% in November but after adjusting for an audit adjustment last year, its drop was only 5% year to year. Austin and San Antonio were down only 6% each.
Allen, which opened two new shopping centers in 2009, saw sales tax revenues increase 18% in November as did Richardson (up 11%), Round Rock (up 10%), McAllen (up 6%) and Arlington (up 2%). Plano was up 1.3% in November but that follows a 20% decline in October.
The effect on property owners is a likely increase in their tax rates as city, county and school administrations struggle to maintain services in the face of a declining tax base. An owner’s main recourse is to seek a lower taxable value through protesting his or her property’s assessment.