Sales Tax Increase Shows Texas is Ahead of Other States Despite the Economy, but for How Long?

LUFKIN, TX (KTRE) - Recent state sales tax numbers show that Texas is still ahead of other states. 2008 numbers show that Texas has seen a 2 percent increase in sales tax as compared to 2007.

East Texas has helped those numbers, with Lufkin having a 10 percent increase for the months of November and early December. Lufkin City Manager, Paul Parker says Lufkin is a large regional hub for services like retail which gives us an advantage.

"I think Lufkin being a regional shopping center still offers a lot of opportunities in the region for economic growth and development and that has helped us where we're not impacted quite as large."

Parker says that over 40% of Lufkin's income comes from sales tax and encourages residents to continue shopping and eating locally.

And while recent numbers in sales tax showed an increase, a new report came out today by Texas Comptroller, Susan Combs. She says that in the near future, Texas may see that it is not totally immune from a failing economy.

In the recent Biennial Revenue Estimate, Combs states that,"Though Texas has avoided the worst economic impacts affecting other states, the national downturn has finally begun to touch Texas. Our new economic forecast indicates Texas will be affected in fiscal 2009 before regaining economic momentum in fiscal 2010."