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The City of Elgin received $3.6M in sales and use tax revenue for calendar year 2022, a 17% increase over 2021 collections.
The $3.6M is an all-time record for city sales tax revenue over a twelve-month period.
“This is further confirmation of the positive growth occurring in Elgin at this time” said Mayor Theresa McShan. “Steadily increasing sales tax revenue is a clear indicator that our retail business community is continuing to succeed.”
The State of Texas imposes a 6.25% sales and use tax on “all retail sales, leases and rentals of most goods, as well as taxable services.” Elgin and most Texas cities impose an additional 2% sales tax to create a maximum combined rate of 8.25%. Of that total, Bastrop County receives 0.5% and the city’s economic development corporation receives 0.5%.
Of the 8.25% sales and use tax all consumers pay in Elgin, the city receives 1% to help fund general government operations and services.
In other recent benchmarks, Elgin’s sales tax revenue for this past May was $348,327 – the highest one-month amount in the cty’s history. Prior to October 2019, four other months in the city’s history recorded sales tax revenue exceeding $200,000. In the last 22 months, Elgin has averaged $205,050 in monthly total sales tax revenues.
“From the city’s perspective, growth trends in sales tax revenue are among the best ways to measure the stability of our retail business partners,” said City Manager Tom Mattis. “Clearly, the city and our business community are moving forward together in a positive way.”
