Strong Local Economy
Status Indicators: Proceeding as Anticipated | Monitoring Progress | Reviewing for Improvement | Information Unavailable
Proceeding as Anticipated
Reviewing for Improvement
Please note that Q1, Q2, Q3, and Q4 refer to the first, second, third, and fourth quarters of the Fiscal Year. The City’s Fiscal Year runs from October 1st – September 30th and is denoted by FY. CY denotes Calendar Year.
Per the Budget Office's forecast, sales tax would be considered on trend if collections equaled at least $108.33 per capita for the 4th quarter. The per capita figure is based on an estimated population of 118,118 as noted in the FY2020 Budget Book.
For the 4th quarter, the City missed its goal by $6.38 per capita. The 4th quarter sales tax collections totaled $12,042,394 or $101.95 per capita. However, the City has exceeded its Fiscal Year goal of greater than $427 per capita; the City ended the Fiscal Year with $437 per capita.
The impacts of the COVID-19 pandemic and the continued restrictions placed upon non-essential businesses, as ordered by the Governor, continued to effect sales tax revenues in the 4th Quarter. Sale tax revenues increased slightly over the 3rd quarter, but were still below target. Fortunately, strong sales tax revenues in the 1st and part of the 2nd quarter allowed the City to meet its annual target, despite the pandemic.
Sales tax collections are a barometer of economic health and help the City judge the economic climate going into the next budget year. Sales tax is one of the most important revenue streams for the City, but is also highly volatile and subject to risk. As such, the City conservatively estimates sales tax and does not count on one-time revenues to balance the budget.
The sales tax target is based off what the City has budgeted for sales taxes.
The target and status for this measure reflects the sales tax collections per capita in the City of Sugar Land. Sales tax collections will be reported on a quarterly basis.
Sales tax is generated by goods sold or delivered by businesses within the City’s corporate limits. Of the 2% local share out of the 8.25% total sales tax, 0.25% is allocated to the Sugar Land Development Corporation (SLDC), 0.25% to the Sugar Land 4B Corporation (SL4B), and the remaining 1.5% is deposited in the City’s General Fund.
An increase in sales tax per capita each fiscal year. The target is >$427/capita (Year To Date). This target reflects an increase in the amount of taxable items purchased, and therefore, an increase in the economic vitality of the city. Sales tax collections will be reported on a quarterly basis.
Sales Tax Calculation
sales tax budgeted / population
Sales tax collections are a barometer of economic health, and help the City judge the economic climate going into the next budget year.