AMARILLO, Texas (KAMR/KCIT) — According to the City of Amarillo, the city sales tax collections for May reached a new peak.
The city said sales tax collections for May are up more than 30% from May of 2020 at more than $9.2 million eclipsing $8.9 million in sales tax totals in February.
According to the City it is the highest single-month total in Amarillo’s history.
Those sales tax dollars come from sales that occurred two months ago, back in March.
Assistant City Manager, Laura Storrs, said the sales tax increase is likely thanks to stimulus money sent out during that time.
Storrs said the city built this year’s budget conservatively based on 2020 sales tax and the city is set to start working on next year’s budget soon.
“We would love to assume that this year of record sales tax will continue on into next year. But we will, we will bring those estimates back a little bit knowing there was a lot of federal stimulus dollars going into the economy this year, that may not be going in next year,” said Storrs.
The city said it has had 10 consecutive months of increases in sales tax figures and, for May, the city received $86,000 single local rate collections at a 1.75% rate or $4.9 million in taxable sales for remote sellers. This is an 86% increase compared to remote seller collections in May 2020, and the highest received since this category of collections started in December 2019.
Storrs said while this increase most likely is not sustainable moving forward, it is good that here in Amarillo people are spending and putting money back into the local economy.
Storrs also said the increased sales tax collections mean for now the City is able to work on additional projects.