Sales tax allocations help Gladewater beat budget despite year-to-year dip

Another year-to-year decrease in Gladewater’s monthly sales tax allocation from the state isn’t likely to set anyone to trembling at City Hall – as of August, the city’s coffers are already at $1.15 million in collections for the year, about two months ahead of schedule.
It was glad news for council members last week in a special budget workshop for Fiscal Year 2024-2025. Gains in excess of the city’s conservative sales tax estimate are an ideal way to fund progress-oriented projects, whether it’s enhancing rough roads, upgrading aging water infrastructure or funding residents’ wish lists.
“Sales tax has been the driving economic force in our city for a few years now,” council member Teddy Sorrells said Thursday. “That current number is a big deal. We’re already $1 million in sales tax revenue in August.”
“And it’s two months behind,” Gladewater City Manager Charlie Smith noted – typically, sales tax allocation checks from Texas Comptroller Glenn Hegar’s office are based on transactions two months prior.
Last week, Hegar announced cities, counties, transit systems and special purpose districts would receive $1.2 billion in local sales tax allocations this month. That’s a 0.3 percent decrease compared to August 2023.
For August, the state’s allocation checks are based on transactions from June by businesses that report their figures monthly as well as quarterly filers’ sales from April, May and June.
Gladewater’s net payment this period is $161,770.14, an 8.28 percent decline from the $176,388.88 check 12 months ago. Meanwhile, payments year-to-date total $1,151,531.85, 1.52 percent more than the same time last year.
It was May’s decrease in year-to-year sales tax returns that broke the city’s 28-month streak of gains.
But for the recent hiccups, councilman Kevin Clark agreed, “We’re pushing up on three years of continued growth.”
“It’s obvious we’re bringing in more tax revenues,” echoed council member Rocky Hawkins.
With the city poised for surplus in the next allocation, Sorrells anticipates even more good news on the horizon.
“I think that’s amazing,” he said, predicting more sales tax-oriented development ahead for a variety of reasons, such as Toll 49 and the commercial traffic it will generate. “I know of at least a couple of businesses that are coming. It’s going to be more even then.”
Nearby, the City of White Oak’s allocation check for August is $137,228.10, a 17.43 percent decreased compared to 2023’s return. The community has collected $1,066,183.79 this year, a little more than 4 percent from the total banked by August 2023. Kilgore saw a 12.63 percent year-to-year gain while Longview’s allocation declined by 11.16 percent.
In Upshur County, Union Grove’s thin $641 check is 22.1 percent more than it saw in August ’23. Gilmer’s monthly allocation declined 1.76 percent from 12 months back.