Holiday shoppers boost sales tax receipts

McALLEN — For the first time since 2008, holiday shoppers spent more in McAllen than the year before, according to data released Wednesday by the Texas Comptroller of Public Accounts.

The data show taxable retail sales in McAllen increased 2 percent, the first year-over-year increase since 2008, when the economic downturn sent holiday shoppers packing. Across Hidalgo County, the Comptroller’s allocations — payments to cities that reflect taxable retail sales that occurred in December — increased nearly 3.5 percent.

“To me, it’s just not enough information to get excited over,” said Mayor Richard Cortez, cautioning that while it’s good news, he’s more concerned with McAllen’s retail market share in Hidalgo County. (Judging by the allocations, McAllen had nearly 47 percent of the county’s taxable retail sales in December.)

On Friday, the Comptroller plans to release February’s sales tax allocations, which reflect taxable retail sales that occurred in December, to Rio Grande Valley cities and other government entities across Texas. Most Valley cities impose a 2 percent local sales tax, entitling them to 2 cents for every dollar spent.

While an imperfect measure — taxable retail sales exclude many products, including most groceries — allocation data provides some insight into consumer confidence and economic trends. The most noteworthy data released Wednesday shows:

>> McAllen’s current period collections, which show only sales tax collected in December, increased 2 percent year-over-year from 2010 to 2011. Overall, McAllen’s allocation increased 2.5 percent, largely owing to larger audit collections.

Many Mexican shoppers visit La Plaza Mall in December to buy Christmas gifts. The 1.2 million square foot mall is a top performer for Simon Property Group, which owns malls across the country.

While La Plaza doesn’t release sales data, the mall had “increased sales” this year, said Isabel Rodriguez-Vera, area director of marketing and business development, in a statement. “We were pleased to see heavy traffic from Black Friday through January as customers redeemed their gift cards.”

>> Pharr experienced one of the largest year-over-year increases, watching taxable retail sales increase 20.1 percent, according to current period collections data. The city’s new H-E-B plus! opened in November, though many of the goods sold there aren’t subject to sales tax.

>> Harlingen had blockbuster December sales, up 10.3 percent year-over-year, according to current period collections data. That number likely reflects Bass Pro Shops’ first full month of operation. The outdoor outfitter opened in mid-November.

>> Brownsville retailers did slightly better, with sales up 1.3 percent year-over-year, according to current period collections data. The city’s allocation, though, will be slightly lower, partly owing to an audit refund.

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Dave Hendricks covers McAllen and general assignments for The Monitor. He can be reached at dhendricks@themonitor.com and (956) 683-4452.