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CITY OF FOREST HILL
SALES TAX
Sales tax collections are based on economic activity and vary with changes in the local economy.
Estimated FY 2018‐2019 collections (in the General Fund) of $1,500,000 are consistent with last year’s
collections of $1,436,499. We expect a little more due to the new businesses being constructed within
the FY 2018‐2019.
The local sales tax rate is 8.25%. Businesses within the city limits collect the tax and remit the tax to the
State Comptroller. Of the 8.25%, 6.25% is retained by the State of Texas. The remainder of the sales tax
collected by the State is retained by the General Fund (1%), Community Development Corporation
(0.5%), Street Maintenance (0.25%), and the Forest Hill Library District (0.25%). The Library District Sales
Tax is not used by the operations of the City.
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