Featured, from left: Nick Cantú, Realtor/Owner, Jinks Realty, Mayor Pro Tem Richard Molina, and Abisai Y. Ortiz, Realtor, Jinks Realty, during the Jinks Realty Ribbon Cutting and Open House on Friday, May 6, 2016 at Grindstone Coworking, 506 W. University Drive in Edinburg. Not pictured are Lee Jinks, Broker/Owner, Jinks Realty, Jania Cantú, Realtor, and Mary Alice Palacios, Realtor (www. JinksRealty.com). In addition to new businesses opening in the city, Edinburg’s economy continues to show continuing growth based on other financial figures, including in retail sales activities, according to the Texas Comptroller of Public Accounts.
Photograph By RONNIE LARRALDE
Edinburg’s retail economy during June 2016 showed a more than 8.5 percent improvement over the same month last year, a figure that is much better than the statewide average improvement of 1.8 percent for all cities, the Edinburg Economic Development Corporation has announced. For June 2016, Edinburg’s retail economy generated $2,000,505.08 in local sales taxes, compared with $1,843,334.30 during the same period in 2015, representing the improvement of 8.52 percent, according to the Texas Comptroller of Public Accounts. During the first six months of 2016, Edinburg’s retail economy produced $14,288,346.32 in local sales taxes, compared with $13,591,448.24 for January through June 2016, representing an improvement of 5.12 percent. The local sales tax is used in Edinburg to help pay for many city services, while the Edinburg EDC uses its one-half cent local sales tax to help generate economic development in the city.
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Edinburg’s retail economy in June 2016 showed 8.52 percent improvement over June 2015, and 5.12 percent growth during first half of 2016
By DAVID A. DÍAZ
[email protected]
Edinburg’s retail economy during June 2016 showed a more than 8.5 percent improvement over the same month last year, a figure that is much better than the statewide average improvement of 1.8 percent for all cities, the Edinburg Economic Development Corporation has announced.
For the first half of 2016, Edinburg’s retail economy – as measured by local sales taxes generated from purchases of eligible goods and services – also remained healthy, showing a more than five percent improvement over January through June 2015.
In addition, the combined average for only city retail economies in Texas from January through June 2016 was less than one percent (0.9) than the combined average for only city retail economies during the first six months of last year.
Those figures are based on sales made in June 2016 by businesses that report tax monthly, and sales made in April, May and June by quarterly filers.
The local sales tax data is among the latest economic barometers featured in a detailed summary provided by the Texas Comptroller of Public Accounts, which released retail sales figures on Wednesday, August 10, 2016.
Among its many duties, the Texas Comptroller’s office is the state’s chief tax collector, accountant, revenue estimator and treasurer.
The local sales tax is used in Edinburg to help pay for many city services, while the Edinburg EDC uses its one-half cent local sales tax to help generate economic development in the city.
The amount of local sales taxes collected also helps reflect the strength of an economy, along with construction activities, per capita income, education, historical performances, and related trends.
The Edinburg EDC, of which Agustín García, Jr. is Executive Director, is the jobs-creation arm of the Edinburg Mayor and Edinburg City Council.
The Edinburg EDC Board of Directors is comprised of Mark Iglesias as President, Harvey Rodríguez, Jr. as Vice President, Ellie M. Torres as Secretary/Treasurer, and Mayor Richard García and Richard Rupert as Members.
Texas Comptroller Glenn Hegar announced on August 10 that he will send cities, counties, transit systems and special purpose taxing districts $769.3 million from the June 2016 local sales tax collections.
All those entities combined represented an average of a 1.2 percent increase over June 2015.
“The cities of San Antonio, Austin, Fort Worth, Arlington, Plano and Irving saw noticeable increases in sales tax allocations,” Hegar said. “Energy-centric cities, such as Houston and Midland, continue to see decreases in sales tax allocations.”
Among the Valley’s largest cities, Edinburg’s retail economy from January through June 2016 was 5.12 percent better than January through June 2015, with Pharr posting the best rate of increase for that same six-month period, with a 6.19 percent improvement.
For the month of June 2016, Edinburg’s retail economy was 8.52 percent better than June 2015. Pharr had the best showing for all major Valley cities for June 2016, registering a 12.22 percent improvement over June 2015.
Based on local sales taxes generated, McAllen had the best showing in terms of revenue for June 2016 ($5,465,818.96), followed by Brownsville ($3,402,584.60), Harlingen ($2,087,071.09), and Edinburg ($2,000,505.08).
During the first six months of 2016, Edinburg’s retail economy produced $14,288,346.32 in local sales taxes, compared with $13,591,448.24 for January through June 2016, representing an improvement of 5.12 percent.
For June 2016, Edinburg’s retail economy generated $2,000,505.08 in local sales taxes, compared with $1,843,334.30 during the same period in 2015, representing the improvement of 8.52 percent, also according to the Texas Comptroller of Public Accounts.
The sales tax, formally known as the State Sales and Use Tax, is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. Texas cities, counties, transit authorities and special purpose districts have the option of imposing an additional local sales tax for a combined total of state and local taxes of 8 1/4% (.0825).
HOW OTHER VALLEY CITIES, COUNTIES PERFORMED FOR JUNE 2016 AND JANUARY THROUGH JUNE 2016
Based on the amount of sales taxes generated, according to the state comptroller’s office, the Valley’s major cities ranked accordingly in the following local sales tax figures for June 2016 and January through June 2016:
June 2016 compared with June 2015
McAllen: $5,465,818.96, down 2.36 percent compared with June 2015 ($5,598,390.23);
Brownsville: $3,402,584.60, down 3.30 percent compared with June 2015 ($3,518,949.94);
Harlingen: $2,087,071.09, up 1.60 percent compared with June 2015 ($2,054,079.23);
Edinburg: $2,000,505.08, up 8.52 percent compared with June 2015 ($1,843,334.30);
Pharr: $1,609,004.20, up 12.22 percent compared with June 2015 ($1,433,707.70);
Mission: $1,427,285.70, up 3.39 percent compared with June 2015 ($1,380,467.67); and
Weslaco: $1,083,642.66, up 2.63 percent compared with June 2015 ($1,055,858.36).
January through June 2016
McAllen: $41,460,420.35, down 4.07 percent compared with January through June 2015 ($43,220,476.71);
Brownsville: $25,191,292.06, up 1.48 percent compared with January through June 2015 ($24,822,427.95);
Harlingen: $15,363,458.53, up 2.43 percent compared with January through June 2015 ($14,998,059.70);
Edinburg: $14,288,346.32, up 5.12 percent compared with January through June 2015 ($13,591,448.24);
Pharr: $11,368,706.87, up 6.19 percent compared with January through June 2015 ($10,705,900.11);
Mission: $10,231,594.73, up 0.11 percent compared with January through June 2015 ($10,219,900.01); and
Weslaco: $8,008,705.92, down 2.33 percent compared with January through June 2015 ($8,199,825.78).
All cities in Hidalgo County reported a total of $13,876,301.79 in local sales taxes during June 2016, compared with $13,556,785.85 in June 2015, an increase of 2.35 percent. Year-to-date (January through June 2016), all cities in Hidalgo County registered $103,342,355.68 in local sales taxes, compared with $103,264,911.22 for the same six months in 2015, a decrease of 0.07 percent.
Hidalgo County government does not collect a local sales tax.
All cities in Cameron County generated $6,931,544.94 in local sales taxes during June 2016, compared with $6,956,802.71 in June 2015, a decrease of 0.36 percent. Year-to-date (January through June 2016), all cities in Cameron County registered $49,222,776.34 in local sales taxes, compared with $47,893,708.18 for the same period in 2015, an improvement of 2.77 percent.
Cameron County government does not collect a local sales tax.
All cities in Starr County produced $472,991.74 in local sales taxes during June 2016, compared with $528,497.81 in June 2015, a decrease of 10.50 percent. Year-to-date (January through June 2016), all cities in Starr County registered $3,717,493.91 in local sales taxes, compared with $3,736,266.51 for the same period in 2015, a decrease of 0.50 percent.
Starr County government does not collect a local sales tax.
All cities in Willacy County produced $145,872.77 in local sales taxes during June 2016, compared with $147,854.99 during the same month in 2015, a decrease of 1.34 percent. Year-to-date (January through June 2016), all cities in Willacy County registered $1,039,508.33 in local sales taxes, compared with $1,044,199.94 for the same period in 2015, a decrease of 0.44 percent.
Willacy County government does not collect a local sales tax.
For details of the June 2016 local sales tax figures for all cities, counties, transit systems, and special purpose taxing districts, locate the Monthly Sales Tax Allocation Comparison Summary Reports at the comptroller’s website:
http://www.window.state.tx.us/taxinfo/allocsum/compsum.html
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For more information on the Edinburg Economic Development Corporation and the City of Edinburg, please log on to http://edinburgedc.com or to http://www.facebook.com/edinburgedc
