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Down go the sales tax receipts

It’s bad. Expected, but bad.

Texas collected $2.58 billion in state sales tax revenue in April — a roughly 9% drop from what the state collected the same month last year, Comptroller Glenn Hegar announced Friday. That drop, from $2.8 to $2.58 billion, marked the steepest decline since January 2010, Hegar said.

April’s revenue, which the state collected from purchases made in March, is among the first official glimpses at the dramatic blows state and local budgets will take from widespread social distancing measures first taken last month to stop the spread of the new coronavirus. And Hegar warned that the state’s largest single source of funding will continue to “show steeper declines” in the coming months compared with a year ago as the economy continues what will likely be a slow crawl out of a weekslong virtual shutdown due to the pandemic.

“The steepest declines in tax remittances were from businesses most quickly and dramatically affected by social distancing,” Hegar said in a statement. “However, those losses were, to a degree, offset by increases from big-box retailers, grocery stores and online vendors. Remittances from oil and gas-related sectors also fell significantly as oil and gas exploration and production companies slashed capital spending in response to the crash in oil price.”

Hegar’s been sounding the alarm for awhile, it was just a matter of what the exact number was. If we’re lucky, April will be no worse. Whether things get better in May and beyond, which is the intent of the reopening scheme, won’t be known for a couple of months. How the population as a whole acts, and whether or not the virus comes roaring back, will be the keys to that.

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