The city of Lindsay is the only Cooke County municipality to show an increase in sales tax allocations this month, according to information released by Texas Comptroller Glenn Hegar’s office on Wednesday, July 10.

Hegar will send cities, counties, transit systems and special purpose taxing districts $764.3 million in local sales tax allocations for July, 0.7 percent more than in July 2018, a news release from Hegar’s office states. The disbursements are based on sales made in May by businesses that report tax monthly.

Lindsay is set to receive $10,384 which is up more than 3% compared to the July 2018 payment of $10,076.

Sales tax revenues July 2019

Mayor Scott Neu said he believes the uptick in sales tax revenue is because of a telecommunications tax the city began collecting in January.

According to Neu, the city passed an ordinance in 1987 authorizing a tax on sales of all telecommunications within the city.

“During the fiscal year 2018-2019 budget preparations we discovered that the ordinance had either never been submitted to the state or the state never started collecting it,” Neu said.

In the last quarter of 2018, members of the Lindsay City Council reauthorized the telecommunications tax. The vote has since allowed new tax dollars to come to the city.

“I anticipate that we will see a gradual increase until we level off to our new normal,” Neu said.

Overall, Lindsay is seeing a 3.62% increase this year with year-to-date payments totaling $75,110. During this same time last year, the community had received $72,482, information from the comptroller’s office shows.

Cooke County took the biggest hit this month with its sales tax allocations decreasing more than 21 percent.

The county will receive $308,908 from Hegar’s office compared to the $404,080 it received in July 2018 for May 2018 sales, according to the comptroller’s website.

Cooke County Judge Jason Brinkley said sales tax revenues can fluctuate a “good bit” from month to month.

“We estimated that we would bring in $3.5 million [in sales tax] for this current year’s budget, which is about $292,000 a month average,” Brinkley said. “…So, we are in good shape.”

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