Katy July sales tax revenue down 8% year over year, but fiscal year so far up 2%

katy mills
Sales tax revenue from Katy Mills has been declining during the coronavirus pandemic, the city of Katy's finance director said. (Jen Para/Community Impact Newspaper)

Sales tax revenue from Katy Mills has been declining during the coronavirus pandemic, the city of Katy's finance director said. (Jen Para/Community Impact Newspaper)

Correction: The story's headline was updated to reflect July sales tax.

For the fourth consecutive month, city of Katy is collecting less sales tax revenue than in 2019.

The city of Katy will collect $936,090.39 in sales tax revenue in July, a 7.9% decrease compared to what the city collected July 2019, according to figures released by the Texas comptroller of public accounts in early July.

The sales tax revenue cities will collect in July is based on sales that occurred in May. On May 1, Texas began its phased economic reopening plan related to the coronavirus pandemic.

Since April, monthly sales tax collections have been down year over year, with the largest decrease being in June payments with a 16.8% decline.

However, for the 2019-20 fiscal year so far, the city of Katy’s sales revenue is up by about 2%, or $154,000, year over year, Katy Finance Director Andrew Vasquez said. The comptroller’s site—which reports the city has experienced a 2.3% year-to-date decline—shows year-to-date data for the calendar year, not fiscal year, he added.

“I’m pleased with it, but not completely satisfied,” he said.

The 2019-20 city budget had projected an 8% year-over-year increase in sales tax revenue, he said. Vasquez added before March, sales tax revenue in the city was trending to meet that goal, but then the coronavirus pandemic struck.

To make up for a budget shortfall, the city of Katy has paused a few projects worth about $1 million, Vasquez said.

In particular, Katy Mills has seen large declines in sales tax collections, Vasquez said. The mall’s June sales tax data—reflecting April sales—declined about 69% compared to June 2019, while May data—reflecting March sales—decreased about 44% compared to May 2019.

“We’ve been cheering them on, but they’ve been hit hard,” Vasquez said of Katy Mills. “I’m hoping this is all short term and we get back to normal soon.”
By Jen Para
Jen joined Community Impact Newspaper in fall 2018 as the editor of the Katy edition. She covers education, transportation, local government, business and development in the Katy area.


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