City of Nacogdoches reports rise in sales tax revenue

City of Nacogdoches reports rise in sales tax revenue
Published: Aug. 12, 2022 at 3:16 PM CDT|Updated: Aug. 12, 2022 at 9:10 PM CDT

NACOGDOCHES, Texas (KTRE) - The city of Nacogdoches has seen a 13% increase in sales tax revenue from 2021.

City manager Mario Canizares says that in 2020, they were still seeing an increase of 5 percent from the previous year.

“Many of us thought things would slow down, but they didn’t. Again, people stayed home, and they shopped local, but what we’ve seen is a double-digit growth. Right now, our sales tax activity is a little over 13 percent increase from year over year” Canizares said.

Canizares says the state average for local governments is around 15.4%, and many local governments across the state are seeing great increases in sales tax revenue.

“So were just slightly below state average, but again that’s still great, that’s a great number to have” Canizares said.

Canizares says some of the increase can be attributed to inflation.

“I would easily attribute 7 to 8 percent of our increases are due to inflation. Because goods and services across the spectrum have increased. Some have increased minimally; some have increased quite a bit” Canizares said.

The city is currently in the budgeting process for the next fiscal year.

Canizares says the city is carefully budgeting the money because they know the increases seen will not last forever.

The city is also seeing increases in the costs of goods and services they purchase.

“They’ve gone up anywhere between 20 to 40 percent more, so while it’s been great to see those increases in revenues, our expenditures have increased as well” Canizares said.

In 2019 the city of Nacogdoches was still seeing a 2.5 percent growth in sales tax revenue.

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