DATA: Houston logs $6.57M sales tax revenue loss in March

Before the COVID-19 crisis hit Houston, the local economy appeared to be on a positive track, with the city generating about $12 million more in sales tax revenue this fiscal year over last year, according to data from the Texas comptroller's office.

However, in March alone, the city absorbed a more than 10% drop in revenue, losing $6.57 million in revenue compared to March 2019. It was the city's worst March since 2013.

With the stay-at-home order March 24 and the cancellation of the rodeo in mid-March, most of those declines were felt in the latter half of the month.

March sales ended somewhat better than a projected 15% decline estimated by city officials prior to the data becoming available, which is delayed by two months, but the month of April could bring even worse news.

If sales tax collections in April fall by 25%, then all of the city's 2019-20 sales tax gains could be wiped out. A drop of 50% would put the city behind last year's revenue by over $14.6 million. Steep declines are likely, given that most businesses could not fully operate. Collections in May and June could also be affected.

The city's fiscal year begins July 1.