The gist
A decrease of approximately $1.2 million or 30.6% in sales tax was received by the city in May. When adjusted to the monthly payment from the Texas comptroller’s office are removed, net March sales tax collections were down 3.4%, according to a news release.
A closer look
According to Assistant City Manager Jared Werner, the industries that experienced growth in March include food services, wholesale and miscellaneous. Retail, general services, professional services and manufacturing experienced varying levels of decline.
Sales tax revenue for the city has gone through a bit of a roller-coaster ride, from a period of economic resilience during the beginning of the COVID-19 pandemic to other factors in 2022 causing a fall in revenue, city officials previously told Community Impact.
What they are saying
“With the release of the March figures, total sales tax collections have decreased by 4.7% in FY 2023 (October-March),” Werner said. “The March collections were impacted significantly by a negative adjustment of over $1.1 million, which was entirely driven by sales taxes that had been incorrectly provided to New Braunfels based on business-to-business transactions for equipment that was delivered at a facility that is adjacent to, but not within, the incorporated city limits of New Braunfels. The city was aware that this adjustment would be made by the Texas comptroller’s office in the March payment.”
