Page 28 - CityofSouthlakeFY25AdoptedBudget

Sales Tax Revenues
In Southlake, the total sales tax rate is 8.25%. Of that, Southlake Sales Tax Districts
the City receives $0.02 of sales tax for every dollar
spent in our city limits (the remainder goes to the
State). One of those pennies goes to the General
Fund and can be spent on general operating costs,
like supplies, salaries, and general maintenance.
The other penny is split between our Crime Control
and Prevention District (CCPD), the Southlake
Parks Development Corporation (SPDC), and
the Community Enhancement and Development
Corporation (CEDC). The money collected in these districts can only be used for the purposes outlined in
the original referendum presented to the voters, so we set up separate funds to account for the revenues
Budget Overview
and expenditures of each unit. Later sections of this overview provide details about these specific funds
and adopted investments for FY 2025.

Sales taxes are an important source of revenue for the City, making up approximately 29% of total revenues.
It is estimated that non-residents that shop and dine in Southlake generate up to 70% of the sales tax
revenue. Why is this important? This means that “imported taxpayers” visiting the City are supporting a
large portion of the bill for important infrastructure and services that these funds provide. These monies
are used to support the City’s general operations, fund parks development, crime prevention and safety
initiatives, construction and operations of The Marq Southlake, and economic development, as well as pay
off the debt for these funds. Utilizing special sales tax districts has allowed the City of Southlake to maintain
an excellent financial condition and reduce the property tax burden. In FY 2025, about 32% of the total debt
service will be repaid using sales tax collected for special districts.

Figure 10
Sales Tax Collection Trend

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^Khd,> < W Z<^ s >KWD Ed KZWKZ d/KE Z/D KEdZK> Θ WZ s Ed/KE /^dZ/ d
ΨϱϬ͕ϬϬϬ͕ϬϬϬ
Ψϰϱ͕ϬϬϬ͕ϬϬϬ

ΨϰϬ͕ϬϬϬ͕ϬϬϬ

Ψϯϱ͕ϬϬϬ͕ϬϬϬ ΨϮϮ͕ϳϵϬ͕ϲϵϴ
ΨϮϭ͕Ϭϰϳ͕ϯϲϵ ΨϮϭ͕ϱϰϲ͕Ϯϴϰ ΨϮϭ͕ϵϳϴ͕ϰϲϵ
ΨϯϬ͕ϬϬϬ͕ϬϬϬ
Ψϭϴ͕ϱϵϴ͕ϲϯϴ
K>> Z^ ΨϮϱ͕ϬϬϬ͕ϬϬϬ Ψϭϱ͕ϭϬϰ͕ϲϭϲ Ψϭϱ͕ϲϲϬ͕ϵϴϱ

ΨϮϬ͕ϬϬϬ͕ϬϬϬ Ψϴ͕ϰϲϯ͕ϴϯϮ
Ψϳ͕ϴϱϵ͕ϵϵϱ Ψϳ͕ϵϴϲ͕ϴϳϱ Ψϴ͕ϭϰϲ͕ϲϭϮ
Ψϭϱ͕ϬϬϬ͕ϬϬϬ Ψϲ͕ϴϱϭ͕ϴϬϬ
Ψϱ͕ϳϯϰ͕Ϭϳϴ Ψϱ͕ϴϱϴ͕ϮϮϯ
ΨϭϬ͕ϬϬϬ͕ϬϬϬ
Ψϵ͕Ϯϰϵ͕ϵϯϭ ΨϭϬ͕ϲϭϬ͕ϵϵϯ Ψϭϭ͕ϰϮϲ͕ϭϳϯ ΨϭϬ͕ϳϰϳ͕ϲϱϬ ΨϭϬ͕ϵϲϮ͕ϲϬϯ
Ψϱ͕ϬϬϬ͕ϬϬϬ Ψϳ͕ϳϰϭ͕ϬϬϱ Ψϳ͕ϵϬϴ͕ϲϬϭ

ΨͲ Ψϭ͕ϴϵϴ͕ϯϴϵ Ψϭ͕ϵϮϭ͕ϰϴϬ ΨϮ͕ϴϭϰ͕Ϭϳϴ ΨϮ͕ϱϲϳ͕ϵϳϰ Ψϯ͕ϬϱϬ͕ϰϱϵ ΨϮ͕ϲϬϬ͕ϬϬϬ ΨϮ͕ϲϱϮ͕ϬϬϬ
ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ ϮϬϮϯ ϮϬϮϰΎ ϮϬϮϱΎΎ
&/^ > z Z

28 FY 2025 City of Southlake | Budget Book