After months of modest gains, Harlingen sales tax goes negative

HARLINGEN — State sales tax allocations for July show the city of Harlingen down 3.13 percent over the same month last year.

The city received $1.734 million in sales tax revenue from the state for July, down $56,000 from July 2015.

The drop in sales tax allocations for the city reverses a months-long trend of slow but steady increases in allocations. Still, the city of Harlingen’s allocations for the year are up 1.84 percent overall.

These allocations from the Texas comptroller’s office are generally regarded as a reflection of the strength or weakness of retail businesses in local economies.

Other cities in Cameron County also saw drops, with La Feria down 9.6 percent, San Benito down 12.49 percent, Los Indios down 4.76 percent and Palm Valley showing a decline of 12.25 percent.

Cities in the county showing positive sales tax allocations for the month this year were Brownsville, up 6.12 percent, Los Fresnos up 1.78 percent, Port Isabel up 2.68 percent, South Padre Island up 0.43 percent, Rio Hondo up 14.62 percent, Laguna Vista up 8.29 percent and Combes up 24.99 percent.

Countywide, sales tax allocations were $5.98 million, which was a modest 1.29 percent increase over last year.

In Willacy County, Raymondville received $93,874 in tax allocations, which was a significant decline of 19.45 percent.

In Hidalgo County, McAllen’s tax allocation for July dropped 6.54 percent year-over-year, Edinburg saw a gain of 3.41 percent, Mercedes was down 6.14 percent, Mission was up 0.42 percent and Weslaco saw an increase of 2.26 percent

For the year, McAllen’s sales tax revenues are down 4.31 percent and Mercedes is down 4.30 percent.

Over the same period, Hidalgo County shows a 0.15 percent decline in sales tax allocations.

Statewide, total sales tax allocations were $411.3 million for the month, which was down 1.6 percent year-over-year.