Holiday Spending Drives Record Sales Tax Revenue in Rio Grande City

RIO GRANDE CITY, Texas — Rio Grande City recorded its highest monthly sales tax revenue on record, with collections reaching $797,530.31 in February, a 12.33% increase compared with the same month last year, according to figures presented during the Rio Grande City Economic Development Corporation board meeting Feb. 24.

The February total reflects December 2025 retail activity, which is typically one of the busiest shopping periods of the year.

“This reflects your holiday activity because this is for December,” board member Dalinda Guillen said during the meeting.

City Finance Director Leonel Cantu said the $797,530.31 collected represents an $87,527.34 increase compared with $710,002.97 recorded in February 2025, marking the largest monthly sales tax collection in the city’s history.

The Rio Grande City Economic Development Corporation receives 25% of the city’s 2% local sales tax allocation. Based on February collections, the EDC received $199,382.58, compared with $177,500.74 during the same month last year.

From October through February, the EDC has collected $750,824.39 in sales tax allocations, representing about 36% of its projected annual budget.

Overall, sales tax collections have increased 9.45% since the start of the fiscal year in October, with five months of reporting completed.

EDC expenditures for the fiscal year total $288,701, or about 14% of the approved $2.08 million budget, according to the report.

“Sales tax revenues continue to demonstrate positive growth, supporting consistent monthly allocations and solid year-to-date performance,” said EDC Executive Director Melinda Gomez.

Gomez told board members the financial results indicate the economic development corporation remains in a strong position roughly one-third of the way through the fiscal year.

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Editor's Note: This article has been updated to reflect corrected financial figures provided by the City of Rio Grande City, including updated sales tax totals and Economic Development Corporation budget figures.