CITY: SALES TAX COLLECTION AHEAD OF BUDGET
(Nov. 7, 2024)
The City of Midland has collected $11.115 million in sales tax through the first two months of fiscal year 2024-25.
The amount is a $137,363 increase over what city officials budgeted during the first two months of the fiscal year. November’s sales tax collection was 1.3% higher than the monthly budget.
The City reported fiscal year 2023-2024 finished over budget by $2.098 million.
The City of Midland also reported this week that the $5,759,272 in sales tax revenue in November was a 5.65% decrease (compared to November 2023). Midland County and the City of Odessa also reported decreases in November.
Fiscal Year 2025 is starting at a 4.78% decrease over this point last year.
Sales tax revenue is generated by sales tax income from two months prior to collection; The November collection is based on September sales. The City of Midland collects a full cent of the 8.25% of sales tax inside the city.
Analysis
Comparing October 2024 YTD (full FY 2024) to October 2023 YTD (full FY 2023) -- Retail and Professional/Consulting Services have decreases in sales tax contribution. Wholesale and Manufacturing (predominantly oil-related) have started to see slight increases in sales tax contributions after being lower for a majority of the year. Most other industries have stayed relatively flat.
It is possible that November 2024 reflects a similar pattern to October 2024, where oil-related industries are seeing a slight incline, while Retail and Professional/Consulting Services saw a decline.
October 2024 YTD breakdown by category:
34.4% - Retail Trade
24.5% - Manufacturing
9.5% - Hotel & Food Services
8.7% - Wholesale
6.8% - Professional & Other Services
4.5% - Telecom & Information
4.1% - Construction
3.4% - Utilities
3.4% - Finance & Rentals
0.7% - Waste Management
Sales tax report
November 2024: $5,759,272
November 2023: $6,104,334
Decrease from FY 2024: 5.65%
FY 2024-25: $11,115,541
FY 2023-24: $11,612,082
Decrease from FY 2024: 4.28%
Notes: The City YTD actuals are over budget by $137,363
MDC
November 2024: $1,439,818
FY 2024-25: $2,778,885