Page 142 - Hurst FY19 Approved Budget

AD VALOREM TAX VS. SALES TAX COMPARISON

Millions of Dollars
$18M
17.4

15.5 15.9 $14M

13.3 13.5 13.8 14.0
12.6 12.5 12.4
12.3
$10M
10.6
10.8
10.8
9.3 9.1 9.5 9.7 9.7 10.1 9.6 9.6
$6M

$2M

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Est. Budget
Tax Year

The above graph shows revenues generated by property taxes for both General and
Debt Service Funds and sales taxes for the General Fund. Together, property and sales
taxes account for 59% of General Fund revenues. It has been the policy of the City
Council to grant property tax relief to citizens to partially offset increases in appraisal
values. Over the past twenty years, well over $20 million in property tax relief has
been granted through tax rate reductions alone. The City also provides the maximum
homestead exemption and additional tax relief for senior and disabled residents.

Both property tax and sales tax collections were negatively impacted by the recent
economic downturn. However, the City’s conservative budgeting approach and
strategic plans allowed the City to manage the impacts of a struggling economy. The
primary driver of property and sales tax is economic strength and consumer confidence.
Sales tax projections for 2018 – 2019 have once again been budgeted conservatively,
per the City’s budget policy, as shown in the graphs.

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