The city of Pflugerville could see a $1.1 million decrease in sales tax revenue this fiscal year due to the coronavirus pandemic, officials said.
City Finance Director Amy Good shared the financial implications of COVID-19 during a Tuesday night virtual City Council work session.
Sales tax comprises slightly more than one-quarter of general fund revenue in the city’s FY 2020 budget.
Good told council members 15% of businesses have been closed in the city due to the pandemic. To evaluate the impact of COVID-19 on sales tax, Good said the city hired a retail coach who evaluated retail foot traffic.
Before the pandemic, the city would receive between $900,000 to $1 million a month in sales tax revenue, Good said.
“We do not yet have sales taxes following the start of this event,” Good said. “Through the April receipts we were about $200,000 ahead of where we were expected to be for budget and we received 60% through the year.”
Retail makes up the largest portion of city sales tax revenue, followed by general services and manufacturing.
This is a developing story. Check back for more details.
Credit: Source link
