LaredoBuzz.Com

Courtesy David Alegria,

The Comptroller’s May’s retail report, which reflects March’s retail sales activity, showed that the City of Laredo collected $5.02 million in sales taxes – the most ever collected by the city in one month.

Laredo, Texas— Laredo retail sales increased by more than 40% in March reaching record levels and shot up nearly 50% over the same month in 2020, according to new information released by the Texas Comptroller of Public Accounts. The Comptroller’s May’s retail report, which reflects March’s retail sales activity, showed that the City of Laredo collected $5.02 million in sales taxes – the most ever collected by the city in one month.

Monthly sales taxes in Laredo have never surpassed $4.8 million, and recently they’ve averaged about $40 million annually, according the Comptroller. This year, Laredo is about 9% percent ahead of last year primarily on the strength of the latest report. The reports always reflect activity that actually took place 2 months prior. Last May, at the outset of the pandemic, the City posted $3.48 million in sales taxes, but over the last five years the May report has averaged $3.69 million. Typically, 5 or 10 percent growth year-over-year is considered significant by most experts, so climbing nearly 50% is an eye-popping anomaly.

Additionally, Laredo is not alone. Many cities across the state are reporting 20, 30 and 40% retail gains as Texans received stimulus checks, received vaccinations and started going out again as restrictions were lifted and businesses opened up. Laredo, like most cities in Texas, levies a 2% sales tax on retail sales activity in addition to the 6.25% the state charges. Of the funds collected, the City directs 1% to its general fund, ½ cent is sent to Webb County, ¼ cent goes to El Metro Public Transit and the sports venue receives ¼ cent.

Sales tax collections are reported by the Texas Comptroller monthly. Like most cities, historically, the months of November and December record the highest retail sales taxes.