Sales & Use Taxes

Overview

Many people don’t know that most of their sales and use tax is remitted to the State of Texas; in fact, for every dollar of taxable sales, the state receives six and one quarter cents (or 6.25%) In the State of Texas local municipalities have the option to adopt up to an additional two cents (or 2%) for local use for a total maximum combined rate of 8.25%. This local tax must be in accordance with state law and be utilized for specific purposes as identified by the state’s local government code.

Funds

The Town of Westlake has utilized 100% of the local option and established the following sales tax supported funds:

• Property Tax Reduction (PTR) Tax – This tax represents a 1/2 cent (1/2%) sales tax levy used to reduce the property tax burden on local residents and businesses by providing Westlake with an additional unrestricted revenue source.
• 4B Economic Development Fund – This fund utilizes the revenues generated from a 1/2 cent (1/2%) sales tax to fund qualified development projects. Currently, the 4B Fund is committed to the repayment of the debt incurred for the town’s Civic Campus project.
• General Fund Allocation – The town levies one cent (1%) in sales tax that is utilized to offset expenditures in the General Fund.