Sales tax collection increased by $202,539.38 to $3.7 million in March, representing a 5.71% increase year over year, according to the Texas Comptroller’s Office.
Richardson fared better than many of its neighbors, according to the data. In Plano, sales tax revenue dropped by 5% in March, while collections in Dallas were down by more than 10%.
This bump in revenue could lessen the budgetary impact brought on by COVID-19. In late April, the city projected its budget would take an $18 million hit, $6.8 million of which was tied to a projected loss of sales tax revenue through the end of fiscal year 2019-20 in October.
“The city is pleased with March sales tax [revenue], but it is much too early to draw any conclusions about the impact COVID-19 will have on overall sales tax performance,” Deputy City Manager Don Magner wrote in an email. “We remain committed to tracking activity very closely and adjusting our budgeting strategy to ensure a balanced finish to [FY 2019-20].”
