Inflation factor for increased sales tax revenue

KILLEEN, Texas (KWTX) – Sales tax revenue is on the rise across central Texas by 2022, and while this is great news for cities considering some construction projects, it has a certain cost.

In the town of Killeen, revenue will end the year around $ 31 million, up from nearly $ 27 million in 2020.

Part of what drives that income up is inflation, which isn’t such good news for small business owners.

“Everything is sort of eating away and the cost just keeps going up. But the number of people entering has yet to increase, said Tanya Jolly, co-owner of Jolly’s Family Restaurant.

Little by little, Jolly and her husband have to raise the prices just to make a profit. Inflation is a major factor for this.

“Everything goes up for us too, the cost of electricity, the cost of gas, the cost of food, everything,” Jolly said. “So as we hit our prices a little bit at a time, try to be patient with us.”

And keeping small businesses afloat is a big part of keeping sales tax revenue high.

“If I’m a small business and someone spends dollars in my store, I’m probably going to take those dollars and spend them directly on another business in the community,” said Robert Tennant, interim president of accounting, of Finance and Economics at Texas A&M Center in Texas.

A cheaper housing market like Killeen’s is also important for sustaining incomes. Many people in Austin’s tech industry find places more affordable and aren’t afraid to drive.

So even surrounding areas like Temple and Waco could benefit.

“I’m thinking of all of Bell County, Lampasas County,” Tennant said. “In time, I wouldn’t be surprised if it spread to Waco.”

Yet the problem for residents now is escalating costs.

Even things like cooking oil have become hard to find affordably.

“We were paying around $ 16 to $ 17 for a big five gallon jug… now these particular things cost around $ 46 each,” Jolly said.

Copyright 2021 KWTX. All rights reserved.

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About Clara Barnard

Clara Barnard

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