Page 119 - Hurst FY20 Approved Budget

AD VALOREM TAX VS. SALES TAX
COMPARISON
AD VALOREM TAX VS. SALES TAX COMPARISON
Millions
20.0 19.1
19.0 Millions of Dollars
18.0 $20M
17.0 16.2 17.0
16.0 19.1
15.0 14.0 15.0 17.0
14.0 13.3 13.5 13.8 16.2 $16M
13.0 12.3 12.5 12.4 15.0
12.0 13.8 14.0
12.5 11.0 12.4 13.3 13.5 $12M
12.3 10.0 10.8 10.8 10.5 10.6 10.5
9.0 9.5 9.7 10.1 10.1 10.8 10.8 10.5 9.3 10.6 10.5
9.7
9.1 9.5 8.0 9.7 9.1 9.7 9.3 $8M
7.0
6.0
5.0 $4M
4.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
AD VALOREM TAX SALES TAX
Tax Year

The graph above 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 64% 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. The primary
driver of property and sales tax is economic strength and consumer confidence. Sales tax projections
for 2019 – 2020 have once again been budgeted conservatively and includes a $1.2 million dollar
reserve, per the City’s budget policy, as shown in the graphs.

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