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Sales tax revenue down in August

Sales-tax data released this week indicate that Temple residents may have taken real advantage of the back-to-school tax-free weekend back in August.

The amount returned to the city that was collected by merchants for the state in August was lower this year than it's been since 2005, both in nominal dollars and dollars adjusted for inflation.

If that's the case, retailers would have seen a large increase in business in items on the tax-free list.

Those items included clothing and footwear and school supplies, including backpacks.

Or, the numbers could mean that consumers simply spent less in August, period.

That's the estimate of Temple City Manager David Blackburn.

"I would say that our local consumers continue to reflect the spending patterns we are seeing at the national level, which is less spending overall," he said.

The state had projected that consumers would save $65 million during the late-August tax-free weekend.

In fact, the city is expecting less income from sales taxes in the budget approved for this year, he said.

County tax return numbers were also down slightly this August from last August.

The city collects a 1.5-percent tax on eligible items. The county's sales tax is one-half percent. And the state tax is 6.25 percent.

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