Texas Comptroller Don Huffines announced that cities, counties, transit systems and special purpose districts will receive $1.4 billion in local sales tax allocations for August, 13.6 percent more than in August 2025, according to an Aug. 12 news release from the comptroller’s office. He paired the announcement with a call for local governments to put the added revenue toward property tax relief.
The allocations are based on sales made in June by businesses that report tax monthly, and on sales made in April, May and June by businesses that file quarterly, the release said.
“The increased sales tax revenue distributed to local governments is a strong sign the Texas economy continues to grow,” Huffines said in the release. “It is also a clear signal that many local governments with increased sales tax revenue can dedicate much of that to property tax reduction.”
Lowering property taxes, Huffines said, is one of the best ways to make housing more affordable and to help Texans with the cost of gas, groceries and other living expenses.
Cities will receive $920.9 million in August allocations, up 14.4 percent from August 2025, according to the release, while transit systems will receive $298.5 million, an increase of 12.7 percent. Counties will collect $83.2 million, up 7.5 percent, and special purpose districts will receive $145.1 million, up 13.7 percent.
Details on August allocations to individual cities, counties, transit systems and special purpose districts are available through the comptroller’s monthly sales tax allocation comparison summary reports, the office said. With sales tax receipts running ahead of last year, Huffines signaled he intends to keep pressing local governments to convert that growth into lower property tax bills.