Businesses in the unincorporated county generated $95,959.34 for March 2007 compared with $80,760.97 for March 2006, or an increase or 18.8 percent. March returns for sales taxes represent those charged by merchants on January sales. The negative spiral suffered by the City of Hawkins for 2006 as a whole, however, continued into the first month of 2007 as sales tax collections were down by more the 20 percent, from $12,043.21 in January 2007 compared with $15,080.95 for the same month a year ago.

The figures were released last week by the Texas Comptroller’s Office.
 

The merchants along the Holly Lake/Hawkins Corridor (FM-2869/FM-14) are important contributors to the county sales tax revenues. Those tax dollars are placed in Wood County’s general fund. The local portion of sales taxes collected by businesses located within the city limits of Hawkins come back to the city’s general fund and to the Hawkins Community Development Corporation.
 

The sales tax funds are collected by local merchants, sent to the Texas Comptroller along with the state’s six and-a-quarter cents tax on each dollar of retail purchase. Hawkins’ local portion—one-and-one-half cents/dollar—is then returned two months later (January collections returned in March). Merchants in the unincorporated county areas collect a half-cent sales tax on each dollar sale.
 

The $12,043.21 in local sales taxes collected by merchants in Hawkins during November has been distributed to the two budgets supported by the sales tax, with approximately $8,028.80 deposited into the city’s general fund and the remaining $4,014.40, representing a half-cent sales tax, into the HCDC.
 

Comparative figures for sales tax returns for the month of March (as collected in January) for each city and the county follow with commentary furnished by Gary McKinley, executive director of the Wood County Industrial Commission: