RGV has outperformed state of Texas for sales tax revenues over past 12 months

WESLACO, Texas - Matt Ruszczak’s end of year report for sales tax revenue activity in the Rio Grande Valley shows the region outperformed the state of Texas. Every month the executive director of Rio South Texas Economic Council analyzes numbers put out by the Texas Comptroller’s Office. His December report looked at sales tax revenue collections from November 2019 to October 2020. While Texas as a whole saw a 0.36 percent increase in collections in this period, the figure for the Valley was even better. The region recorded a 1.23 percent increase. “That is strong result, all things considered,” Ruszczak said. All four counties in the Valley recorded more sales tax revenue collections in 2020. Cameron County was up 2.03 percent. Willacy County was up 3.1 percent. Hidalgo County was up 0.63 percent. And Starr County was up 7.66 percent.Looking at individual cities in Cameron County, Brownsville saw a 1.28 percent increase, Harlingen a 1.09 percent increase, Port Isabel a 0.18 percent increase, and San Benito a 12.55 percent increase. The main drag on the county’s numbers was South Padre Island, which saw a 4.2 percent decrease. In Willacy County, the biggest city, Raymondville, saw a 4.49 percent increase in sales tax collections in the 12-month, Nov. 2019-Oct. 2020 period.In Hidalgo County, Edinburg saw a 3.21 percent increase, Mission a 1.05 percent increase, Pharr a 2.81 percent increase, and Weslaco a 5.54 percent increase. The two cities in Hidalgo County that saw a decline both rely more heavily on Mexican shoppers. McAllen’s sales tax revenue collections were down 3.79 percent. Mercedes saw a drop of 16.16 percent. Mexican shoppers have not been able to cross into the United States since last March due to the coronavirus pandemic.In Starr County, Rio Grande City’s sales tax revenue collections were up 8.38 percent.Ruszczak pointed out that 36 of the 44 cities in the Valley saw an increase in sales tax collections, with 23 recording increases of five percent or more. “For 2020 that is outstanding,” Ruszczak said, referencing the challenges posed to economic activity by COVID-19.Ruszczak noted that eight of the cities in the Valley saw sales tax revenue collections grow by more than 20 percent. “They were the beneficiaries of the COVID shift we have been talking about,” he said. “Instead of going to a destination city, people are shopping closer to home.”Editor's Note: To read the full story go to: www.riograndeguardian.com.Go to www.riograndeguardian.com to read the latest border news stories and watch the latest news videos.