Despite coronavirus restrictions, Missouri City sees increase in sales tax revenue from March sales

Missouri City saw a 7% increase in sales tax collected year over year from May 2019 to May 2020. (Courtesy Adobe Stock)
Missouri City saw a 7% increase in sales tax collected year over year from May 2019 to May 2020. (Courtesy Adobe Stock)

Missouri City saw a 7% increase in sales tax collected year over year from May 2019 to May 2020. (Courtesy Adobe Stock)

The city of Missouri City collected $965,631.40 in sales revenue in May, a 7.08% increase compared to what the city collected in May 2019, according to figures released by the Texas Comptroller's Office in early May.

The sales tax revenue Missouri City collects in May is based on sales that occurred within the city in March.

Many cities, including neighboring Sugar Land, saw a decline in sales tax revenue collected in May as the data began to reflect the economic effect of the coronavirus pandemic. In Texas, social distancing guidelines and business restrictions were put in place starting in mid-March.

Jon Hockenyos, founder and president of economic analysis and public consulting firm TXP, attributed Missouri City’s increase in sales tax revenue to people shopping locally since they are not commuting out of the city for work.

“Now that people aren’t going to work, they're a little more inclined to shop in the community in which they reside, whether that's actually going to the grocery store—and, in my wife's case, buying everything under God's green Earth—or buying stuff online,” Hockenyos said during a presentation at the May 18 Missouri City City Council meeting.

Hockenyos projects that 29% of people working in the Missouri City area will experience some period of joblessness because of the coronavirus, which will have a lasting impact on sales tax revenue in the city.

“One month is not a trend,” Hockenyos said. “I do not expect this number to stay positive for long. But it was certainly a surprise to me, and I think the folks on staff as well, that [sales tax revenue] came in positive for the month of March.”

Using joblessness estimates by sector of the economy, Hockenyos presented a baseline forecast that shows Missouri City seeing reduced sales tax revenue in fiscal years 2019-20 and 2020-21, returning to precoronavirus figures in FY 2021-22 and having steady growth after that.

For FY 2019-20, which started in October 2019, Missouri City estimated its general fund would receive $9.6 million in sales tax revenue and rebates, according to a copy of the city’s budget available online.

There is a 8.25% sales tax rate in Missouri City; the state retains 6.25%, and 2% is returned to the city by the Texas Comptroller’s Office. Of the 2% local share, 1% is allocated to METRO, and the other 1% is deposited in the city’s general fund. METRO rebates 50% of sales tax collections back to Missouri City for street improvements and other mobility projects.

From October 2019 through May, the comptroller's office has returned $7.2 million in sales tax revenue back to Missouri City.

The state of Texas saw a 9.3% drop in sales tax revenue collected in May. The comptroller’s office said in a press release that June’s statewide sales tax numbers are expected to show steeper declines, as restrictions and stay-at-home orders were in effect for all of April.

Sales tax revenue projections are important as Missouri City staff begin the budget process for FY 2020-21. According to the City Charter, the city manager must submit to council a proposed budget on or before Sept. 1.

“This is a process,” Hockenyos said. “Staff will tell you the numbers changed when the May sales tax figures, which reflected March, came out. I wouldn't be surprised if they changed again next month and on from there, and on from there.”

He continued, “What we've got to do is stay on top of it so we give you the best possible information we can, that's as up-to-date as we can make it, as you are going through the process of making spending plans and setting budgets for the coming fiscal year."
By Claire Shoop
Claire joined Community Impact Newspaper in September 2019 as the reporter for the Sugar Land/Missouri City edition. She graduated from The University of Texas at Austin in May 2019 where she studied journalism, government and Arabic. While in school, Claire was a fellow for The Texas Tribune, worked for the student newspaper, The Daily Texan, and spent a semester in Washington, D.C. She enjoys playing cards with her family and listening to the Boss, Bruce Springsteen.


“Hope is on the horizon,” Fort Bend County Judge KP George said at a press conference Jan. 4. “The vaccine is here.”
Vaccine distribution starts in Fort Bend County and more top Houston-area news

Read the most popular news from the past week from the Houston area.

Here are the latest coronavirus case count updates in Fort Bend County. (Courtesy Adobe Stock)
Fort Bend County sees 3,384 new coronavirus cases Jan. 15-21, up 498 from week prior

There were an average of 483.43 COVID-19 cases reported a day last week in Fort Bend County.

The Texas Department of Transportation plans to install a center, raised median on 5.8 miles of FM 1092 from Hwy. 59 to Hwy. 6. (Courtesy Adobe Stock)
Texas Department of Transportation to add median on FM 1092 in Missouri City

In an effort to improve the movement of traffic and reduce collisions along FM 1092 in Missouri City, the Texas Department of Transportation plans to add a median to separate the six lanes of traffic and limit left turns.

Dr. Jacquelyn Johnson-Minter, director of Fort Bend County Health & Human Services, said Jan. 21 that it has been frustrating that the supply of vaccines thus far has been unable to meet the demand. (Morgan Theophil/Community Impact Newspaper)
UPDATED: Fort Bend County COVID-19 vaccine preregistration list hits capacity

Fort Bend County is prepared to receive and administer hundreds of thousands of COVID-19 vaccinations, County Judge KP George said during a press conference Jan. 21. To do so, however, the county must receive the vaccines in the first place.

One local health system leader said he expects everyone, including those under age 65, will have access to the vaccine within the next 90 days. (Courtesy Adobe Stock)
Houston-area health system leaders talk progress, hurdles during COVID-19

Officials from CHI St. Luke’s Health and UTMB Health said community members must remain vigilant as case counts climb but that they expect the current surge to peak by early February.

During a North Houston Association meeting Jan. 20, Jazz Hamilton—first vice president with the Retail Brokerage Services Group for CBRE—discussed how the future of retail will likely be shaped by the conveniences to which consumers have become accustomed amid the coronavirus pandemic. (Ronald Winters/Community Impact Newspaper)
Pandemic-induced retail conveniences are here to stay, official says

According to Jazz Hamilton, first vice president with the Retail Brokerage Services group for CBRE, between January and November of 2020, consumers spent almost $550 billion online—a 33% increase from 2019.

In the Sugar Land and Missouri City area, a number of seats will be on the ballot, including ones on Sugar Land City Council and the Fort Bend ISD board of trustees. (Community Impact staff)
Filing period open for Sugar Land City Council, Fort Bend ISD board of trustees elections

See which races are on the May 1 ballot and who has filed to run so far.

Fort Bend ISD is beginning the process of finding a new superintendent after Charles Dupre announced his intent to resign by December 2021. (Claire Shoop/Community Impact Newspaper)
Fort Bend ISD board to begin hunt for new superintendent by hiring search firm

The board is expected meet Feb. 8 to deliberate and Feb. 17 to interview search firms.

In addition to vaccine hubs, there are also smaller community vaccine providers throughout Texas, such as pharmacies, that may also have the vaccine available. (Eva Vigh/Community Impact Newspaper)
EXPLAINED: When, where and how Texans can receive the COVID-19 vaccine

As Texas is still in the early stages of rolling out the COVID-19 vaccine, many Texans are still unsure about where, when and how they can get inoculated.

The barbecue eatery is the second Killen's Restaurant Group venture to launch in The Woodlands area. (Courtesy Killen's Barbecue)
Killen's Barbecue opens in The Woodlands and more Houston-area news

Read the latest business and community news from the Houston area.

Hoover Oaks Memory Care and Assisted Living will be located at 1722 Eldridge Road in Sugar Land. (Courtesy Hoover Oaks Memory Care and Assisted Living)
New memory care and assisted-living facility coming to Sugar Land in spring 2021

Hoover Oaks Memory Care and Assisted Living will provide 24-hour assistance to 16 residents.