Information from the Texas Comptroller indicates that City of Tyler sales tax revenues deposited for the month of May have decreased .76 percent as compared to May 2011, resulting in a 1.84 percent cumulative year-to-date increase.
The reported revenue of $3,282,753.29 is comprised of $2,188,502.19 general sales tax revenue and $1,094,251.10 half-cent sales tax revenue. The figures represent receipts from March 2012 collections as there is a two-month lag before taxes are reported and remitted back to the City from the State.
“We are disappointed to see this slight decrease in collections after experiencing an almost 11 percent increase last month,” said City Manager Mark McDaniel. “The economy is slowly recovering; however, we are seeing significant fluctuations in sales tax revenues. Consequently, we are approaching our expenditures and next year’s budget in a very conservative manner.
“The year-to-date increase of 1.84 percent is still below our budget of 3 percent growth; so, at this time, we will continue with the soft hiring freeze that was put in place as a precautionary measure to ensure we are keeping our expenses in balance with current revenues. In addition, we will continue the postponement of employee pay adjustments until we reach our goal of 3 percent growth.”