DeSoto FY21----FY22-Approved-Budget

Non Property Tax Revenue







2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024


3.2.1 Sales Tax Sales Tax revenue for DeSoto has fluctuated in the past 10-years mainly because of the economic recession that affected the revenue between FY2009 and FY2011. The Texas comptroller of Public Accounts provides historical data and a forecast for the next 30 years for the retail sales under Texas Economic Forecast Section. Comparing the annual percentage change in Sales Tax Revenue in the past 10-Yrs for DeSoto and State of Texas, DeSoto has experienced a growth in Sales tax Revenue that is 0.75% less than Texas average. The Sales tax revenue for the next 5-Yrs is forecasted based on the assumption that DeSoto will experience an annual growth percentage in revenue that is 0.75% less than the annual percentage growth for Texas. This will result in estimated growth for sales tax by 5.34% annually. 3.2.2 Utility Franchise Tax: The utility franchise tax has grown over the past 10 years by 27.50 from its base year in 2009. As other revenue sources of the city, utility franchise tax collection dropped between FY2010 and FY2012 due to the economic recession. The average annual percentage change in franchise tax for the past 10-years was 3.61%. This percentage will be used as an EGF for the next 5-years. 3.2.3 Hotel Tax Revenue: The current ordinance sets hotel tax fees at 7 percent of taxable hotel revenue. Unlike other revenue sources, Hotel tax revenue experienced a consistent growth over the past 10 years. Tax revenue grew from 405,064 in 2009 to $985,335 in 2019 increasing by 143.25% from base year 2009. The growth in revenue was due to increase in the number of hotels in DeSoto. The number of hotels in DeSoto increased from 7 in 2010 to 10 Hotels in 2019. The estimated growth rate for Hotel tax revenue will be estimated as the average of the percentage increase in tax collections since 2013. The forecast model assumes at least two new hotels will be introduced to the city


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