Page 64 - GrapevineFY24 Adopted Budget

Sales & Use Taxes are the largest General Government revenue stream, at 41%. 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-2018 FY-2019 FY-2020 FY-2021 FY-2022 FY-2023
Actual Actual Actual Actual Actual Estimate

Collections $28,286,627 $29,863,646 $25,758,869 $28,590,889 $36,748,631 $39,550,968
Gain / (Loss) $1,132,721 $1,577,019 ($4,104,777) $2,832,020 $8,157,742 $6,011,484
% Change 4% 6% -14% 11% 29% 18%

General government sales tax receipts for FY23 are projected to be $39.5 million, an increase of $6
million (18%) from the previous year.

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 2015 through September 2023. 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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