Harlingen sees huge increase in sales tax receipts
HARLINGEN — Sales tax receipts in Harlingen for November amounted to the second largest increase in the Rio Grande Valley, behind McAllen.
Harlingen received $1,524,459 in January for November 2011 sales, which is $123,451 more than was received in January 2011.
Sales tax receipts are distributed by the state two months after the actual sales are made.
McAllen’s sales tax receipts increased nearly $200,000 in January compared with last year’s numbers.
"This number reflects the Bass Pro Shops being open, which is a great increase," Economic Development Corporation CEO Bill Martin said Wednesday. "This 8.8 percent increase is excellent and we hope it continues throughout the fiscal year."
Bass Pro opened on Nov. 16.
The money the city receives in February will include sales tax from Bass Pro for the entire month of December.
Of the 8.25 percent tax rate, each month the state keeps 6.25 percent and gives 2 percent back to cities, Finance Director Roel Gutierrez said.
Of that 2 percent, 1.5 percent goes into the city’s general fund, and the other 0.5 percent is split between the EDC and the Harlingen Community Improvement Board, Gutierrez said.
For the fiscal year, which runs from Oct. 1, 2011, through Sept. 30, 2012, the EDC projected Bass Pro would generate $250,000 in sales tax receipts, Martin said. The city, through an agreement with the EDC — called a 380 Agreement — would then give this money to the EDC to help pay off the nearly $57 million in bonds and interest for construction of the Bass Pro store.
A 380 Agreement allows cities to make loans of public money or grants to businesses and developers who in turn build projects within the city, Martin has said.
San Benito’s sales tax receipts decreased by almost $5,000 for this month compared with January 2011.
In January, Brownsville received $2,589,340 in sales tax money from November’s receipts. This is nearly $80,000 more than January 2011.
The cities of Edinburg and Pharr saw around an $80,000 increase in their sales tax receipts, with Mercedes and Mission increasing $7,000 and $9,000 respectively. Weslaco’s sales tax receipts increased about $46,000 in January compared with last year.
