Roanoke received almost 22% more in allocations in December than it did in 2019, while Keller saw a more modest increase of 6.3%. Fort Worth was the only one of the three cities to collect less in sales tax revenue than the year before.
How much a city makes in sales tax revenue can help indicate economic trends, and this year's trends were shaped by the COVID-19 pandemic.
The five cities that collected the most sales tax revenue, including Dallas and Fort Worth, received less than they did in 2019. Fort Worth, which collected $13.7 million in December and $165 million to date, received 0.15% less than last year. Dallas, however, fared worse, losing 2.49% in sales tax revenue compared to 2019.
Smaller cities with smaller budgets, such as Keller, Roanoke and nearby Colleyville and Southlake, were able to increase revenue despite the pandemic. Keller’s yearly revenue increased by 12.53% to $12.7 million, with $1 million of that collected in December. Roanoke was allocated almost $2 million in December, with year-to-date revenue of over $18 million, 9.35% higher than last year.
Sales taxes are collected by the state, which receives 6.25% in state tax per sale. Cities are allowed to charge additional sales tax of up to 2%, and the comptroller’s office distributes that locally determined portion once a month. The allocations distributed in December are based on sales made in October, according to the press release by the comptroller.
Total allocations to Texas cities for 2020 remained almost flat over last year, increasing by 0.4%.