City of Tyler plans for future as sales tax revenue decreases

Local News

On Wednesday, the head of the Tyler Chamber of Commerce told us sales tax revenue was down because of internet shopping, plus bad times in the oil field. Thursday, we met with the city of Tyler’s Financial Department to see how the dip is affecting them.

The city of Tyler is experiencing a 4.2% decrease in sales tax revenue over the last year. According to the U.S. Census Bureau, online shopping is one of the fastest growing industries. Within a click of a button, your purchase directly impacts the local economy.

“We’re down about $530,000, so it does have a great impact,” said Chief Financial Officer Keidric Trimble.

Trimble said more than 50% of the city’s sales tax revenue comes from the retail sector. 

“We do get some sales tax revenues from companies like Amazon, but that is something that we need to look into a little bit further,” he said.
Due to the drop, the city has frozen approximately 50 positions from parks and recreation, finance, the library and traffic departments.
Early on in the stages of long-range planning, Trimble said they’re looking at forecasting five years out for the general fund.
“It will help to determine what our revenue requirements will need to be down the road and if we can’t meet those revenue requirements then we maybe need to step back and look at what service levels do we want to lower, what service level expectations do we think the citizens would accept,” said Trimble.
So while you search for your next item online, remember your local economy is taking a hit.

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