Frisco's latest monthly sales tax revenues down 12% year-over-year

(Graphic by Cherry He/Community Impact Newspaper)
(Graphic by Cherry He/Community Impact Newspaper)

(Graphic by Cherry He/Community Impact Newspaper)

Frisco saw a 12% drop in sales tax revenue allocated for May compared with the same month a year ago, according to data released this week by the state.

The $7.16 million sales tax allocation for Frisco was based generally on purchases in March, the Texas comptroller’s office reported May 6.

Social distancing and business restrictions put in place in late March due to the ongoing coronavirus pandemic factored into this most recent allocation from the state.

Next month’s allocation is expected to show further decline across the state, as restrictions and stay-at-home orders were in effect for all of April, according to a news release from the comptroller’s office.

In May 2019, Frisco received more than $8.1 million in sales tax revenue.

Sales tax receipts make up a little more than 25% of Frisco’s total revenues in its fiscal year 2020 general fund budget. That makes sales taxes the city’s second-largest revenue source behind property taxes.

On the whole last year, Frisco saw 3.12% growth in sales tax revenue compared with 2018, which saw one of the city's lowest growth rates of the past decade. Year-to-date, Frisco has been allocated more than $38.57 million in sales tax revenues. That is a 3.64% increase over the same stretch in 2019, data showed.

The more than $6.5 million Frisco was allocated in sales tax revenues in April was a 4.93% increase over the same month in 2019. That increase was less than the city saw in the previous two months of this year, but higher than the 3.25% rise Frisco saw from April 2018 to April 2019.

Frisco Assistant City Manager Nell Lange recently told City Council that staff will not know the effect that coronavirus restrictions might have on the city’s finances until the next month of sales tax revenues are released in June.
By William C. Wadsack

Editor, Plano

William joined Community Impact Newspaper in December 2019. He previously served as managing editor of several daily and weekly publications in North Texas and his native state of Louisiana.