The City of Tomball reached a landmark in the amount of sales tax revenue received in February compared to previous years. It collected its highest total to date at $1.4 million, 28.05 percent up from 2012.
Sales tax is generally the most significant source of income for a city, and it accounts for about 48 percent in Tomball. Cities can use the revenue for road maintenance, infrastructure or other necessary improvement and development projects.
"It's a very neat system of how it all works together, and we get to keep our property taxes low by emphasizing shopping local," Tomball Mayor Gretchen Fagan said. "I have to attribute [the increase] to the economy, of course, and business growth in the city."
February sales tax revenue is collected from December sales activity. Fagan said city officials determined shoppers spent about $96 million in Tomball's stores and restaurants during December 2012, and it hopes to keep the momentum for the remainder of the year.
Sales tax revenue is distributed to the state, county and city. Tomball, in turn, gives a portion of the revenue to the Tomball Economic Development Corporation, which enables it to give incentive grants to new businesses and in return create more jobs.
"We are doing a lot to make businesses want to come here," Fagan said.