So far this year, Plano has collected $44.8 million in sales tax, which is up slightly from the $43.9 million recorded at the same time last year, according to data from the Texas Comptroller of Public Accounts.
The city started off the year with declines in year-over-year collections; however, numbers began to pick back up in April. In June, year-over-year allocations soared by about 38%, from $5.6 million to $7.7 million, according to the data. Budget Director Karen Rhodes-Whitley said that while the city has not fully recovered from the pandemic, she feels optimistic about the way things have progressed.
“The July and August numbers will be telling,” she said.
The comptroller’s office said the growth trend experienced in Plano is consistent across the state. On May 12, Comptroller Glenn Hegar announced nearly $1.1 billion in monthly sales tax revenue was distributed to local governments.
Sales tax collections in Plano varied over the course of the pandemic; however, most months saw annual declines. The biggest dip was recorded in July, when revenue dropped by about 17%.
By the end of 2020, Plano recorded $87.8 million in sales tax revenue, which was about 1.25% lower than 2019, when it collected $88.9 million.
Part of the decline seen in 2020 was due to a business that accidentally paid its sales tax to Plano when it should have gone to another city, Rhodes-Whitley said. This accounted for a loss of one-fourth of the city’s total sales tax revenue, she said.
Rhodes-Whitley estimates the lifting of COVID-19 restrictions will result in a sales tax revenue total of around $87 million at the end of 2021.
