When the various adjustments to the monthly payment are removed, net May sales tax collections increased by approximately 1.7%. The variance between the two figures is driven entirely by an audit adjustment included in the overall payment of approximately $642,000, according to the city of New Braunfels.
“With the release of the May figures, total sales taxes collections in FY 2022 have increased by 13.1% through the first eight months of the fiscal year,” Assistant City Manager Jared Werner said in an announcement. “The May collections included a surprisingly large audit adjustment. Audit adjustments are the result of the state comptroller’s office determination that sales taxes were not allocated correctly. Therefore, it is more appropriate to look at the current-to-current collection activity in May. With net growth of 1.7%, the May figures are certainly higher than anticipated given the continued impact of sales tax losses from HD Supply.”
According to Werner, the May data represents the recent trend that inflation and continued demand for services are alleviating a portion of the loss of sales tax revenue from HD Supply.
In June, the city of New Braunfels announced an overall decrease of approximately $221,000, or 6.1%, in sales taxes received in June for April compared to last year. When the various adjustments to the monthly payment are removed, net April sales tax collections decreased by about 6.3%.