The Lubbock city treasury will receive nearly $6.6 million in sales and use tax revenues from the state Friday -- an increase of more than 11 percent from February 2012's payments.
Friday's infusion represents taxes collected on business activity in December. The 11.15 percent boost -- nearly doubling the state's 6.1 percent year-over-year gain -- suggests the Hub City had a strong holiday season.
The announcement from Comptroller of Public Accounts Susan Combs' office states the January tax collection -- the money to be distributed to cities, counties and special taxing districts Friday -- is the 34th consecutive month of year-to-year improvement.
The state's sales tax collection totalled some $2.12 billion, with about $741 million going out to cities, counties and special districts.
"Growth in sales tax receipts was led by the construction, retail trade and restaurant sectors," said Combs. "Receipts from oil and natural gas-related activity also continue to be strong."
January's sales tax collections include fourth-quarter collections and annual collections from businesses too small to file monthly returns.
James Arnold, executive vice president of Lubbock National Bank, said the part of the jump in economic activity came from strong December retail action and a business sector beginning to spend.
"There was some post-election thawing," said Arnold, whose bank sponsors the monthly Lubbock Economic Index.
Arnold and other economy-watchers had felt for some time that businesses had been stockpiling cash, but had been unwilling to spend much, waiting for the presidential election's outcome.
He identified several other situations moving the local economy forward, including a continuing low unemployment rate, sustained low interest rates making borrowing more attractive, and growth at Texas Tech University and in the city's medical cluster.
Lubbock County will receive a hefty payment of more than $2.2 million, some 11.6 percent more than the $2.0 million it received in February 2012.
Distributed by MCT Information Services
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