Page 69 - Grapevine FY22 Adopted Budget v2
P. 69

Sales & Use Taxes are the largest General Government revenue stream, at 36%.  This category
               contains both sales and mixed beverage taxes.  Sales tax receipts are the result of a tax levy on the
               sale of goods and services within the City as authorized by the state of Texas.  The maximum sales
               tax allowed  for the  City of Grapevine’s  general fund  is one  cent per dollar on all  goods  and
               services deemed taxable.  Alcoholic beverage taxes are the result of mixed beverage and private
               club registrants remitting a 14% mixed beverage gross receipts tax to the state.  The state then
               remits 8.3065% of those taxes to the City.

                 SALES TAX       FY-2016      FY-2017      FY-2018      FY-2019      FY-2020      FY-2021

                 Collections    $28,314,649  $27,153,906   $28,286,627  $29,863,646 $25,758,869  $28,590,889
                 Gain / (Loss)   $1,007,700   ($1,160,743)  $1,132,721   $1,577,019  ($4,104,777)  $2,832,020
                 % Change               4%           -4%           4%           6%         -14%          11%


               General  government sales tax receipts  for FY22  are  projected  at $29.1  million, an  increase  of
               $556,691 (2%) from the previous year.  Annual collections in FY21 increased 11% over FY20,
               following a 14% drop from FY19 due to the COVID-19 pandemic.





































               The Sales Tax Strength Index, which compares the 12-month and 36-month rolling averages of
               sales tax collections has  proved to be a reliable early indicator of  recessions.  The  chart above
               examines the index for sales tax collections from September 2014 through September 2021.  In the
               early part of the period, sales tax growth was around 5% until February 2016, when it fell to 2.4%.








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