Page 37 - Forest Hill FY20 Annual Budget

CITY OF FOREST HILL

AD VALOREM TAXES –COLLECTIONS

For the fiscal year 2019-2020, the property tax levy will amount to approximately $6,009,318 an increase
of 17.86% of the previous fiscal year’s tax levy amount of $5,098,534.

SALES TAX

Sales tax collections are based on economic activity and vary with changes in the local economy. Estimated
FY 2019-2020 collections (in the General Fund) of $1,706,955 are consistent with current year’s collections
of $1.6M adjusted for increases due to changing tax laws and the State of Texas audits and monitoring of
internet businesses. The local sales tax rate is 8.25%. Businesses within the city limits collect the tax and
remit the tax to the State of Texas Comptroller. Of the 8.25%, 6.25% is retained by the State of Texas. The
division of the 1.75% City of Forest Hill Sales Tax is shown below by Fund.

The City of Forest Hill has a Sales Tax Rate of 8.25%. The rate is composed of the following components:
State of Texas 6.25%
City of Forest Hill 1.75%
Special Library Rate .25%
Total 8.25%

For the 1.75% that the City receives, it is broken out as follows:

General Fund 1.00%
Community Development.50%
Street Improvement .25%
Total 1.75%

Page 34 of 90