DATA: McKinney’s latest monthly sales tax revenue up almost 16% year over year

For the third month in a row, McKinney has received a year-over-year increase in sales tax revenue. (Community Impact Newspaper staff)
For the third month in a row, McKinney has received a year-over-year increase in sales tax revenue. (Community Impact Newspaper staff)

For the third month in a row, McKinney has received a year-over-year increase in sales tax revenue. (Community Impact Newspaper staff)

McKinney saw nearly a 16% increase in sales tax revenue allocated for August compared with the same month a year ago, according to data released by the state.

The $6.05 million sales tax allocation for McKinney was based generally on purchases in June, the Texas comptroller’s office reported July 8. In June 2019, McKinney received more than $5.23 million in sales tax revenue.

McKinney fared better than neighboring cities that also posted year-over year increases. Plano had about a 1% increase in August, and Frisco and Allen were up by about 10% and 9%, respectively.

This marks the third month in a row McKinney has reported a year-over-year increase in sales tax revenue. McKinney’s sales tax payments for July were up by about 18%, and in June they were up by about 12%.

McKinney Chief Financial Officer Mark Holloway noted this was the first time these neighboring cities had experienced a year-over-year increase in sales tax revenue since the COVID-19 pandemic.

“While our sales taxes are great, we're hoping that they're sustainable,” Holloway said. “We need to see more evidence that they will be, especially if the economy possibly takes a further downturn.”


Most of the sales tax information provided to the city is confidential, but Holloway said that McKinney’s strong sales tax numbers can be attributed to two factors: the strength of big-box retailers during the pandemic and the collection of sales tax from online sales.

“I think that we've just seen a bigger uptick than some of our sister cities,” Holloway said. “So those two factors are keeping us stronger.”

While the sales tax growth has been strong, Holloway said the finance department is keeping in mind some “headwinds” that are affecting the city’s revenue. For instance, the city is seeing a downturn in some of its building permits, which are usually a fairly large revenue source for the city, Holloway said. In addition, a state Senate bill in the last legislative session cut the city’s franchise fees, resulting in about $1 million in revenue loss, he said. Interest rates in the city are also down.

“It's good to have the sales tax that's coming in strong because it's making up for some of these deficiencies in other areas,” Holloway said.

The department is proposing a flexible budget for its upcoming fiscal year, he said, and in spite of the pandemic is proposing the city’s first no-new-revenue tax rate.

“We're very proud of that, especially with uncertain revenues, and that being our biggest revenue source,” Holloway said.

The city will hold its first public hearing on the budget Sept. 1 and is scheduled to adopt the budget and tax rate Sept. 15.
By Miranda Jaimes

Editor, Frisco & McKinney

Miranda joined Community Impact Newspaper as an editor in August 2017 with the Grapevine/Colleyville/Southlake edition. In 2019 she transitioned to editor for the McKinney edition. She began covering Frisco as well in 2020. Miranda covers local government, transportation, business and nonprofits in these communities. Prior to CI, Miranda served as managing editor for The Prosper Press, The Anna-Melissa Tribune and The Van Alstyne Leader, and before that reported and did design for The Herald Democrat, a daily newspaper in Grayson County. She graduated with a degree in journalism from Oklahoma Christian University in 2014.