Early sees huge one-off sales tax payment

Staff Writer
Brownwood Bulletin
Brownwood Bulletin

To say the City of Early fared well with its monthly sales tax allocation in August would be an understatement.

The city’s August allocation from the state: a one-off, how’s- that-again $1.36 million. That’s a 1,339 percent increase over last August’s $94,523. The unusually large payment was the result of an audit collection involving Solaris Oilfield Infrastructure, City Administrator Tony Aaron said.

He said the audit showed Solaris had missed collecting some sales taxes, because the company was unaware it was required to collect sales tax for leased equipment that operates outside the city limits within the Permian Basin.

“We’re not going to be getting $1 million every month,” Aaron said. “It’s nice to get it one month.”

Aaron said the allocation was “unusually large but expected.”

Aaron referenced an earlier agreement between Solaris and the City of Early in which the company moved its leasing office to Early for business operations.

While future allocations won’t be as large, it’s been anticipated that the Solaris agreement will double the city’s sales tax revenue annually going forward, Aaron said.

August allocations are the result of June sales.

“Solaris collects and remits their local sales tax to the City of Early and the Early Municipal Development District,” Aaron said. “This revenue will help the City of Early continue to grow and prosper over the next few years. Planning and budget discussions will continue with the Early City Council on the future use and impact of this revenue.

“Solaris Oilfield Infrastructure is a great community partner to the City of Early and we look forward to long and continued relationship with them. “

In Brownwood, the city had “another exceptional month” in August, with an increase of nearly 11 percent over last August, Finance Director Walter Middleton said.

The city’s allocation of $610,738 was $59,497 higher than August 2019, Middleon said.

Raw numbers showed June 2020 was “a pretty good month economically and continues the trend we’ve been seeing of high performance, even during the COVID crisis. Our local economy continues to chug along robustly and I continue to be surprised.”