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Sales tax payments are running about 15% below last year even as October's check ticks up

The state is sending the city $3.5 million this month, 9% more than last October, but the past 12 months total $40.7 million, down from $48 million the year before, comptroller data show.

Jubal Vargas

October 7, 20262 min read

Shopping bags beside a falling bar chart - illustration, Jake Team LLC

The Colony's October sales tax allocation from the Texas comptroller is $3,495,844, according to state data that dates the payment Tuesday, Oct. 6. That is about 9% more than the $3.2 million the city received in October 2025.

But over the last 12 months, the city's payments add up to about $40.7 million, compared with roughly $48 million in the 12 months before, a drop of about 15%.

The calendar year shows the same gap. From January through October, The Colony has received about $34 million, down from about $40.1 million over the same months of 2025.

When the drop began

The change shows up clearly starting with the October 2025 payment. From November 2024 through September 2025, monthly checks ranged from about $3.35 million to $5.49 million. Since then, they have ranged from about $2.72 million, in March, to $3.95 million, in August.

The decline is not driven by one-time items. The share the state labels current-period collections, money from businesses' regular monthly and quarterly filings, fell by a similar 15% over the past year, from about $47.6 million to about $40.2 million.

The comptroller's data does not identify which businesses or types of sales account for the change, and payments generally reflect sales made two or more months before the check goes out.

What the budget expected

The city's budget had already assumed less. The general fund collected about $20.2 million in sales tax in the 2024-25 fiscal year, according to the city's final proposed budget for 2026-27. The adopted budget for 2025-26 counted on about $18.1 million, and the proposed figure for the year that began Oct. 1 is about $19.2 million.

The council adopted the 2026-27 budget Sept. 1 after staff trimmed roughly 10% of budgeted expenses using a zero-based process, the city said at the time.

October's numbers

This month's payment includes about $3.4 million in current-period tax, up about 7% from last October, plus about $79,000 recovered through state audits and $36,000 from earlier periods. The state kept a 2% service fee of about $71,000 before sending the money.

October payments to The Colony in recent years:

  • 2022: $4.07 million
  • 2023: $3.98 million
  • 2024: $3.91 million
  • 2025: $3.20 million
  • 2026: $3.50 million

Sources

State of Texas

State of Texas

thecolonytx.gov

thecolonytx.gov

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Jubal Vargas

Jubal Vargas writes about community life, schools, public safety, and local events in The Colony.

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