Page 58 - Grapevine FY22 Adopted Budget v2

Key Revenue Drivers and Assumptions

Property taxes are determined by the
appraised value of taxable property within the
city and the rate of taxation levied by the city.
The tax rate is assumed to remain at the
current rate of $0.271811 per $100 of
valuation or less throughout the three-year
forecast window. The net taxable value
(NTV) of all property within the city
increased by $940 million (10%) in 2021,
following a 1.4% increase the previous year.

While NTV will likely continue an upward trajectory, this revenue stream is projected to
increase by no more than 3.5% annually during the forecast window due to state-mandated caps
on property tax revenue growth.

Sales Taxes were greatly impacted by the response to the COVID-19 pandemic. Shuttering of
businesses, closures of hotels, canceled conferences, and reduced tourism all contributed to a
14% reduction in sales taxes from FY19 to FY20. Fortunately, as the economy reopened
throughout FY21, Grapevine’s sales tax collections grew sharply resulting in near pre-pandemic
collection rates.

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