DATA: Frisco's latest monthly sales tax revenues down nearly 9% year-over-year

The $6.9 million sales tax allocation Frisco received in September was a nearly 9% decrease compared to the same month a year ago. (Community Impact staff)
The $6.9 million sales tax allocation Frisco received in September was a nearly 9% decrease compared to the same month a year ago. (Community Impact staff)

The $6.9 million sales tax allocation Frisco received in September was a nearly 9% decrease compared to the same month a year ago. (Community Impact staff)

Frisco saw nearly a 9% decrease in sales tax revenue allocated for September compared with the same month a year ago, according to data released by the state.

The $6.9 million sales tax allocation for Frisco was based generally on purchases in July, the Texas comptroller’s office reported Sept. 10. In September 2019, Frisco receive more than $7.57 million in sales tax revenue.

The latest figure is similar to Frisco’s sales tax allocations for May, June and July, which were down 6%-12% compared to the same months in 2019. Those allocations came after social distancing and business restrictions were put in place in late March due to the ongoing coronavirus pandemic.

In August, Frisco saw a nearly 10% rise in sales tax revenue based generally on purchases in June. Frisco restaurants and retailers were able to begin reopening at 25% capacity May 1, under guidance from the city and state. However, when coronavirus cases surged throughout the state in late June, Gov. Greg Abbott issued an executive order June 26 that forced all Texas bars to close. The order also required restaurants to return to a maximum of 50% capacity.

On Sept. 17, Abbott issued an order allowing restaurants, retailers and certain other businesses to expand capacity to 75% beginning Sept. 21.

Frisco Chief Financial Officer Anita Cothran explained some businesses in the city pay sales taxes only quarterly or annually, or have the option of prepaying months. She said the latter may be the reason for the difference in Frisco’s sales tax allotments in August and September compared to the same months in 2019. One of the city’s major taxpayers prepayed those two months ahead of the August allotment, she said.


However, Cothran explained city staff always uses the previous year’s sales tax allotments to know what to expect in the current year.

“Our best indicators are just following the trends from the prior year,” Cothran said. “I think the [trends for the] rest of the calendar year will probably be no different [than last year]. I think it'll be flat. Hopefully it'll be up a little.”

For the fiscal year 2020-21 budget, Cothran said staff budgeted only a 1% increase in city sales tax as it is “a volatile revenue source.”

The latest monthly total puts the city’s year-to-day collections just above last year’s receipts through this point in the year. Year to date, Frisco has been allocated more than $66.87 million in sales tax revenues, which is 0.13% more than last year.

Sales tax receipts make up nearly 25% of Frisco’s total revenues in its fiscal year 2021 general fund budget. That makes sales taxes the city’s second-largest revenue source behind property taxes.

Frisco’s sales tax allocations year-to-date are the eighth highest in the state. Among the cities that have collected more sales tax than Frisco this year, El Paso was the only one that saw an increase in its September allocation compared to the same month in 2019.

On the whole last year, Frisco saw 3.12% growth in sales tax revenue compared with 2018, which had one of the city's lowest growth rates of the past decade.

Across the state, Texas Comptroller Glenn Hegar distributed $765.3 million in local sales tax allocations for September to cities, counties, transit systems and special purpose. That total was a 4.5% decrease compared to September 2019.
By William C. Wadsack
William C. Wadsack is editor of the Frisco edition of Community Impact Newspaper. He previously served as managing editor of several daily and weekly publications in North Texas and his native state of Louisiana before joining Community Impact Newspaper in 2019.


MOST RECENT

The Frisco Planning & Zoning Commission approved a site plan for city park and public trail northeast of the intersection at SH 121 and Spring Creek Parkway Oct. 27. (Site plan courtesy city of Frisco)
Frisco Planning & Zoning Commission approves site plan for city park, public trail

A city park and public trail on the west end of Frisco got their first approval from the Frisco Planning & Zoning Commission Oct. 27.

Exide Technologies’ battery recycling plant operations were located right next to Stewart Creek, as seen in this 2013 photo. All of the buildings at the site have since been taken down, but contamination of the site remains. (Courtesy Exide Technologies)
Frisco takes ownership of former Exide site, plans to resume cleanup

Frisco and its Community Development Corp. announced Oct. 27 that they had taken ownership of 102 acres where the former Exide Technologies battery recycling plant operated for decades.

Tarrant County Judge Glen Whitley announced bars, wineries and breweries could reopen at 50% capacity Oct. 14. (Sandra Sadek/Community Impact Newspaper)
Bar, winery owners in Tarrant County adapt to changing COVID-19 restrictions and more DFW-area news

Read the latest business and community news from the Dallas-Fort Worth area.

The Collin College campus in Frisco has been the city's most popular site for early voting so far. (Liesbeth Powers/Community Impact Newspaper)
DATA: More than 66,000 people turn out to vote early in Frisco during first 2 weeks

The Collin College Frisco campus has been the most popular Frisco polling location with about 1,168 voters showing up each day on average.

Collin County commissioners voted to keep the COVID-19 dashboard on the county's website until the entire commissioners court could discuss its future. (Community Impact staff)
Collin County reverses decision, will keep COVID-19 dashboard active for now

Collin County’s COVID-19 dashboard will remain on the county website until commissioners discuss it further at their Nov. 2 meeting.

An estimated 3,500 trees were destroyed by last October's tornado. (Olivia Lueckemeyer/Community Impact Newspaper)
Free trees: Replace those lost in Richardson tornado and more DFW news

Read the latest business and community news from the Dallas-Fort Worth area.

Frisco confirmed the 21st and 22nd mosquito pools of the season that had tested positive for West Nile virus. (Courtesy Adobe Stock)
Frisco to spray for mosquitoes after two new pools test positive for West Nile virus

The city of Frisco will have a contractor spray for mosquitoes this weekend in two different areas on the city's northside after two pools tested positive for West Nile virus.

Frisco recently approved new incentive agreements and a master development agreement for The Gate development. (Rendering courtesy Invest Group Overseas)
Frisco to save $80M in incentives with new agreements for The Gate development

New agreements for The Gate development along the Dallas North Tollway will save Frisco nearly $80 million in incentive grants compared to previous contracts approved in 2016.

Home furnishings retailer Living Spaces has opened a store in Fort Worth and will offer a variety of designer collections, including Magnolia Home by Joanna Gaines. (Courtesy Living Spaces)
Living Spaces opens in Fort Worth and more DFW-area news

Read the latest Dallas-Fort Worth business and community news.

(Community Impact Newspaper staff)
DATA: Here are the latest real estate trends in Frisco

The number of homes listed for sale decreased in Frisco in September when compared to the same period in 2019.

Oct. 23 is the last day Texas voters can apply for a vote-by-mail ballot. (Courtesy Pexels)
Tackling Texas' vote-by-mail system: Applying, delivering, tracking your ballot

Oct. 23 is the last day Texas voters can apply for a vote-by-mail ballot.