Texas Comptroller Susan Combs announced the state collected $1.68 billion in sales tax revenue in April, up 1.4 percent compared to April 2009.

"This modest increase is welcome after 14 consecutive months of year-over-year declines," Combs said. "Retail trade saw a nearly 5 percent increase in collections, and gains also occurred in the manufacturing sector. Offsetting this were remittances from the oil and natural gas production sector and construction, which continued to decline, but at rates moderating substantially from those seen earlier this fiscal year. April may signal the beginning of a recovery in sales tax collections, although further declines may occur as the sales tax gradually returns to growth."

Combs will distribute $567 million in May sales tax allocations to local governments on Friday, up 4.7 percent compared to May 2009. So far this calendar year, sales tax allocations to cities, counties, transit systems and special purpose taxing districts are down 4.8 percent compared to a year ago.

Combs will send May sales tax allocations of $385.2 million to Texas cities, up 5 percent compared to May 2009. Calendar year-to-date, city sales tax allocations remain down 4.4 percent compared to the same period last year. Texas counties will receive sales tax payments of $33.7 million, up 3.8 percent compared to one year ago. Calendar year-to-date, county sales tax allocations are 9.4 percent lower than last year.

In addition, $22.4 million will go to 165 special purpose taxing districts throughout the state, up 4.9 percent compared to last May. Ten local transit systems will get $125.5 million in sales tax allocations, up 4 percent compared to a year ago.

May’s sales tax allocations to local governments represent March sales that were reported to the Comptroller in April by monthly tax filers and January, February and March sales reported to the Comptroller in April by quarterly tax filers.