Longview Deals with Falling Sales Tax Revenues

LONGVIEW — The decline in sales tax revenue is forcing cities like Longview and Gladewater to go into “conservation mode.” KETK reports East Texans are spending less than they used to at local businesses and that’s causing Longview to tighten its budget planning. The city says it’s been a trickle effect since the decline in oil and gas prices. The state Comptroller’s Office says Longview sales tax revenues have dropped over 15 consecutive months.

City spokesperson Shawn Hara says the city’s had close to a $2.5 million loss in sales tax money during that time. According to Hara, “The general fund is paid for by property taxes and sales tax. Each of those are about a third of that. So as we’ve seen those sales taxes dip, we’ve had to go in and look at the budget and make reductions where we can.” The city encourages residents to spend local, instead of shopping online. Officials say it can help the Longview economy and city services that are important to the community.