Center sales tax up by half from last year - KTRE.com | Lufkin and Nacogdoches, Texas

Center sales tax up by half from last year

CENTER, TX (KTRE) -

City of Center Press Release

 The City of Center's sales tax receipts continue to climb to greater heights, fueled by new growth and development. 

For the month of June, Center's sales tax allocation is 53% higher than last year's June check.  "We are beside ourselves at this record breaking sales tax check," exclaimed Center Mayor David Chadwick.  "For June, we received nearly $350,000 from the Comptroller for sales tax collected in April."

The reason for this increase is not only reflective of all the gas drilling activity in and around Center, but also new businesses which have located in Center.  "More people coming to town means that more dollars get spent in the city," explained Center City Manager Chad Nehring.  "However, now there are more businesses which are oil field supply firms inside the City and their sales are fueling our sales tax growth."

For the year, the City is up 26% from last fiscal year.  The FY 2010 sales tax receipts totaled $2.9 million.  The projected FY 2011 sales tax revenue is $3.4 million.

At last month's East Texas Energy Expo, held at the Windham Civic Center in Center, Dr. Ray Perryman informed the crowd that we have just seen the beginning of gas drilling in Shelby County and the Haynesville Shale.  City officials, therefore, believe that sales tax revenues will continue their upward climb for the foreseeable future.

The City of Center uses their portion of sales tax revenue to fund property tax relief, economic development, street improvements, and general fund operations.  "The additional sales tax revenue allows the City to fund projects it normally would have to put on hold, such as community beautification, park improvements, fire truck purchases, and one time capital costs," said Nehring.

 Copyright 2011 KTRE. All Rights Reserved.

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