Dallas April Sales Tax Revenue Falls 22% Below Budget Projection

Dealing with the coronavirus pandemic, forecasts indicate Dallas may end the current fiscal year $25 million under budget

NBC 5 News

Dallas's April 2020 sales tax receipts are $19,483,347, almost 25% lower compared to last April's total collections.

The State Comptroller's Office released sales tax receipts Friday, and the April collections for the city of Dallas fell 22.8% and about $5.5 million below the budget due to the coronavirus pandemic.

A forecast from Chief Financial Officer Elizabeth Reich indicated that Dallas may end the current fiscal year $25.2 million below budget. Last month the City Council began considering how to overcome the shortfall -- through furloughs or tax increases.

April was the sharpest drop yet for sales taxes, dipping lower than March due to a full month of pandemic-related closures.

Comptroller Glenn Hegar said the worst drop in sales-tax came from the oil and gas sector, where state taxes declined 75%.

Hegar, the state’s chief tax collector and revenue estimator, said Gov. Greg Abbott's reopening and lifting of stay-at-home orders should lead to a slow recovery for some sectors impacted by the pandemic.

"But operations resuming at reduced capacity will result in continued reductions in employment, income and activity subject to sales tax for months to come,” Hegar said in a written statement.

On June 12, phase three of Abbott's reopening plan started, increasing restaurant capacity to 75%.

Fort Worth leaders said they expect a 30% dip in sales tax revenue for the end of fiscal year, which equates to roughly $26 million.

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