HARLINGEN — The Valley’s economy continues to send out vibrant signals, as joblessness continues to fall across the region and state sales tax reimbursements for the month of March showed a sharp upswing.
Among the bigger cities and towns in Cameron, Willacy and Hidalgo counties, only La Feria showed a decline in sales tax reimbursements for the month of March, dropping 4.00 percent compared to the same month last year. La Feria continues to be ahead for the year, up 8.10 percent.
Harlingen has consistently been the biggest gainer when it comes to state sales tax reimbursements among larger cities and that has continued for almost two years. For March, Harlingen was up 6.96 percent and is up 8.53 percent for the year.
For perspective, economic experts say most municipalities consider a 2 to 3 percent annual growth in sales tax revenues to be a positive year.
This month, the biggest numbers belonged to South Padre Island (up 15.11 percent), Mercedes (up 20.69 percent), Edinburg (up 11.87 percent), McAllen (up 10.74 percent) and Brownsville (up 10.44 percent).
The gain for Mercedes was a significant improvement for a city where the retail sector has been hurt badly by the Mexican peso’s weakness against the dollar. Many have speculated Mexican shoppers have been avoiding spending on this side of the border as a result of that exchange rate.
For the year, Mercedes has now clawed its way back to being down just 0.11 percent in sales tax reimbursements. It is the only one of the larger cities in the Valley that is showing a negative number for its year-over-year sales tax reimbursements.
In Willacy County, Raymondville was up 5.00 percent and Lyford showed an increase of 3.48 percent for the month.
The state sales tax reimbursement is seen as an indicator of the health of a city or town’s retail sector. These allocations are based on sales made in March by businesses that report tax monthly, and sales made in January, February and March by quarterly filers.
Statewide, Texas Comptroller Glenn Hegar announced he will send cities, counties, transit systems and special purpose taxing districts $861.8 million in local sales tax allocations for this month, 9.4 percent higher than a year ago.
Cameron County
Monthly Annual
HARLINGEN — Up 6.96 percent Up 8.53 percent
SAN BENITO — Up 3.24 percent Up 1.71 percent
RIO HONDO — Up 10.87 Up 3.50 percent
LA FERIA — Down 4.00 percent Up 8.10 percent
S. PADRE ISL — Up 15.11 percent Up 8.35 percent
PORT ISABEL — Up 10.23 Up 3.30 percent
LOS FRESNOS — Up 30.07 percent Up 10.79 percent
BROWNSVILLE — Up 10.44 percent Up 6.66 percent
Willacy County
RAYMONDVILLE — Up 5.00 percent Up 6.09 percent
LYFORD — Up 3.48 percent Up 8.95 percent
Hidalgo County
MCALLEN — Up 10.74 percent Up 6.12 percent
MERCEDES — Up 20.69 Down 0.11 percent
EDINBURG — Up 11.87 percent Up 6.44 percent
PHARR — Up 0.12 percent Up 7.78 percent
WESLACO — Up 5.24 percent Up 3.48 percent
Source: Texas Comptroller’s Office; sales are from March
