Texarkana, Texas recovering sales tax loss from beginning of 2020


TEXARKANA, Texas (KTAL/KMSS) – A drop in sales tax revenue in Texarkana, Texas took a toll on the city earlier this year. Fortunately, some of the loss has been recovered but cuts were made that could impact revenue for 2021.

Texarkana, Texas Mayor Bob Bruggeman said the city relies heavily on sales tax revenue. The sales tax for the state is 8.25 percent. Of that, Bruggeman said the city gets about 1.25 percent.

“March and April we did take a hit with our sales tax revenue which is what we use as a part of our general fund budget for the city,” said Bruggeman.

Mayor Bruggeman said in June, when stores re-opened, sales shot up about 14 percent in comparison to June of 2019.

“A lot of people were at home. Instead of restocking on a regular basis, they were limited on what they could do as far as getting out and getting groceries.”

Due to the losses in early 2020, the budget for Texarkana, Texas in 2021 has been cut by about  $1.4 million.

“Citizens really won’t see an effect from that. I mean everything that we’re cutting involves things that will be general routine expenses. We’re postponing – for example postponing some fleet purchases for a year.”

Bruggeman said Texarkana is fortunate to have a diverse community that doesn’t rely on just one industry and that over time, the city is seeing growth in its economy.

“Revenue has actually rebounded since we first entered into the pandemic era earlier this year.”

As the holiday season approaches, Bruggeman encourages residents to continue shopping local but to observe COVID-19 guidelines while doing so.

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