Shenandoah reports boost in sales tax revenue

The City of Shenandoah released its financial reports for December 2011, which shows that the city's sales tax receipts increased by 11 percent over the previous year.

According to financial records, Shenandoah earned $507,880.23 in sales tax revenue for December 2011, which is reported in the city's February financial report. In December 2010, the city generated $457,986.11 in sales tax revenue.

City Administrator Greg Smith said some of Shenandoah's large retail outlets saw increases in sales, which directly benefited the city.

"We know Sam's [Club] had a good [holiday shopping season]," Smith said. "Sam's, Home Depot and Sam Moon are some of our top sales tax. If you look at all of the accounts, probably all of those had an increase."

The revenue for December 2011 was the highest of the five months reported in fiscal year 2011–12, which begins in October and runs through September.

According to the National Retail Federation, total retail sales in the U.S. increased by 6.2 percent over 2010.

Sales tax is the largest revenue generator for the city. For fiscal year 2011–12, the city budgeted $4.3 million in sales tax receipts. That projection was based on the city's 2010–11 sales tax revenue, plus a 3 percent increase.

Smith said sales tax revenue funds the city's operation, as well as a portion of the city's debt services. The City of Shenandoah also utilizes property taxes to pay for its debt service.

City of Shenandoah, City of Shenandoah Municipal Complex, 29955 I-45 N., 281-298-5522, www.shenandoahtx.com