Page 60 - City of Westlake FY20 Budget

Section 1 Executive
Community Profile

SALES AND USE TAX RATE

Many people don’t know that most
of their sales and use tax is remitted
to the State of Texas; in fact, for
every dollar of taxable sales, the
state receives six and one quarter
cents (or 6.25%)

In the State of Texas local
municipalities have the option to
adopt up to an additional two
cents (or 2%) for local use for a total
maximum combined rate of 8.25%.

This local tax must be in
accordance with state law and be
utilized for specific purposes as
identified by the state’s local
government code.

4B Economic Development Fund – This fund utilizes the revenues generated from a ½ cent sales tax to
fund qualified development projects. Currently, the 4B Fund is committed to the repayment of the
debt incurred for the construction of Westlake Academy.

General Fund Allocation – The Town levies 1½% in sales tax that is utilized to offset expenditures in the
General Fund (1%) and is used to reduce the property tax burden (½%) on residents and businesses
by providing Westlake with an additional unrestricted revenue source.

HOTEL OCCUPANCY TAX

In addition to sales and use tax
collections, the Town receives a
7% hotel occupancy tax from the
Marriott Solana, Deloitte and any
future hotels in Westlake.

This revenue is recognized in the
Visitors Association Fund and is
used to help fund a shuttle
program for hotel guests as well as
other marketing and promotional
activities.

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