The city of Kilgore saw its sales disbursements from the state drop 51.13% this month compared with a year ago while other area cities felt smaller drops or modest gains, including a nearly 29% increase for the city of Marshall, according to Texas Comptroller Glenn Hegar.
Kilgore City Manager Josh Selleck said the one-page comparison, which showed disbursements dropping to $583,873 from $1.19 million a year ago, does not tell the full story.
He said a more detailed description showed a business overpaid $140,000 in sales taxes, along with an $80,000 audit adjustment from the state.
Selleck said the total comes to $812,000.
“That is right in line with our projections. That is why we budget so conservatively,” he said.
The allocations are based on sales made in September by businesses reporting taxes monthly, and sales made in July, August and September by quarterly fillers, Hegar’s office said. He reported this week that he will send cities, counties, transit systems and special-purpose taxing districts $849.6 million in local sales tax allocations for November.
Other cities facing declining allocations this month include Lakeport at 6.86% percent, White Oak at 7.74%, Overton at 12.33%, Tatum at 9.91% and Ore City at 2.25%. Gregg County’s allocations dropped by 10.67%.
Several cities saw gains, including Longview at 2.05%, Gladewater at 6.94%, Henderson at 3.05% and Hallsville at 9.63%.
Marshall was the big winner with a 28.97% gain over the previous year.
Longview city spokesman Shawn Hara said he was pleased allocations are higher than a year ago.
“I would say overall we’ve had some decent stability over the past couple of years,” he said.
Robert Johnson, executive director of the Gladewater Economic Development Corp. and a board member of the Gladewater Chamber of Commerce, said he also was pleased with his city’s progress.
“These numbers from the Office of the Comptroller reflect the great effort that has gone into economic development initiatives aimed at the recruitment of new businesses and the retention of existing business within the city of Gladewater,” Johnson said in a statement. “We hope to continue this upwards trend in the future by addressing not only business recruitment and retention but also skills development in our city.”