Plano collected $7.6 million in sales taxes during the month of March, a nearly 5% drop from what was collected during the same month last year, the Texas comptroller’s office reported May 6.
March was the first month in which a host of Plano businesses were ordered to close or significantly ramp down operations according to state and local emergency orders. Roughly half of the month of March occurred during Plano’s most far-reaching local restrictions.
In March of 2019, the city collected just over $8 million in sales taxes.
Sales taxes make up the city of Plano’s second-largest revenue source, after property taxes. City budget officials have been preparing for substantial revenue losses as the economy faces the possibility of a deep recession caused by coronavirus-related restrictions.
Plano Budget Director Karen Rhodes-Whitley told council members March 30 that property tax losses were expected to be difficult to project. Changes to the home appraisal values that determine what residents pay in property taxes usually lag behind other economic indicators, Rhodes-Whitley said.