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ADOPTED | BUDGET

Sales Taxes are collected by the
State from the sale of goods and Sales Tax Revenues
services. The General Fund $14.0 General Fund
receives the following portions of $12.0
these taxes from the State: Sales Tax – 1% $10.0
of each dollar taxed within the City, and $8.0
Mixed Beverage Tax – 10.7% of State Millions $6.0
collections within the City. Mixed Beverage $4.0
Taxes for 2022/23 are projected to account $2.0
for .2% of total General Fund Revenues. $0.0
Sales tax revenues account for 21.3% of 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund revenues.

Franchise Taxes are collected
Franchise Taxes primarily from utilities. They
are fees charged for the use of
$6.0
$5.5 public property. These fees
$5.0 account for 8.0% of General Fund revenues.
$4.5
Millions $4.0 Franchise payments are based on different
criteria. A 4% fee on gross receipts is
$3.5
$3.0 collected for gas and electric utilities. The
$2.5 sanitation system collection service pays 4%
$2.0 of gross receipts received from the billing of
2015 2016 2017 2018 2019 2020 2021 2022 2023 garbage collections in the City for both
commercial and residential accounts.

Payment in Lieu of Taxes consist of an annual appropriation from the Utility Fund for
property taxes charged on infrastructure (i.e. pipelines and other utility assets) owned by
the City. The appropriation for 2022/23 is projected at 0.7% of total General Fund
Revenues.

The taxes category which includes Property Taxes, Sales Taxes, and Franchise Taxes account for
73.8% of General Fund revenue for 2022/23. Even with the addition of some new businesses, the
City conservatively estimates sales tax revenues. This is due to competition in the area and a
recovering economy. Local economic indicators, such as the Consumer Price Index and
employment data, are considered in making forecasting decisions, but actual current and historic
collection trends serve as the basis for 2022/23 revenue projections.

116 NRH | TEXAS