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Mar 7, 20235 min read

Finance: Willow Park Sales Tax

Summary: Willow Park sales tax is up 50% from last year, a progression a decade in the making Everything Sales Tax for Willow Park Citizens: *Willow Park sales tax with latest updates and a journal of WP sales taxes, and *Texas Sales Tax with tutorials, articles, research -- all updated and reposted as news develops.

Latest Update: Tuesday, 07 March, 2023

Tags:#Finance



 

Finance: Willow Park Sales Tax

Willow Park sales tax is up 50% from last year.

Everything Sales Tax for Willow Park Citizens: *Willow Park sales tax with latest updates and a journal of WP sales taxes, and *Texas Sales Tax with tutorials, articles, research -- all updated and reposted as news developes.


Table of Contents:

  • Willow Park Sales Tax (current updates and journal)

  • Texas State Sales Tax (tutorials, Q&As, articles, research)


Willow Park Sales Tax

• Current update of Willow Park Sales Taxes

During the 28 February 2023 Council Meeting Agenda Item 4, "As discussed at the February 14th meeting, [14 February 2023 Council Meeting Agenda Item 10] the City is collecting sales tax revenue at a more aggressive pace than anticipated. The budgeted amount for sales tax is currently $1,720,000. As the attached spreadsheet shows, to meet the requested additional sales tax of $280,000 which would bring the new budgeted amount to $2,000,000, the City would need to average $150,000 per month for the remainder of the FY. Currently, the City is averaging $190,000 per month."

• Texas Comptroller > > Transparency > Tax Allocations > City Sales And Use Tax Comparison Summary February 2023


• Research on Willow Park finances and general municipal financials

Willow Park Civics > City Documents > Finance > Budget, Taxes, Debt


• What are the current sales tax rates for Willow Park?

Current Sales Taxes for Willow Park

District / Rate

Texas State / 6.250%

Parker County / 0.500%

Willow Park / 1.500%

Total / 8.250%

source: Comptroller of Texas > Taxes > City Sales and Use Tax


• Willow Park Sales Tax Journal

CIP Land Use Map around I20. Main sources of sales tax, light purple is commercial, red is retail.

  • Texas Sales Tax "pours in," ditto for Willow Park, Willow Park Civics Blog, 19 October 2022, Excerpts. Texas continues to collect increasing tax revenue every month. In September, sales tax revenue totaled $3.69 billion, 17.2% more than last September; Sales tax accounts for 56% of all tax collections and is the largest source of funding for the state budget.


  • Budget Breakdown = Fiscal Year 2022-23, posted 19 September 2022. The Willow Park City Council approved the budget and tax rate for Fiscal Year 2022-23 at the Sept 13 City Council meeting. You can watch a video that breaks down all the details here. To view the budget in its entirety, click here.


Willow Park Sates Tax Report, 2010/11 through 2021/22, as of 30 September 2022


  • The Community News, 26 August 2022 edition, City says planned improvements will solve majority of drainage issues, Public hearing set for budget/tax rate, online and in .pdf .

    • At a budget workshop in June, Grimes revealed the preliminary projected revenue from property taxes to be $1.9 million with the projected sales tax revenue being $1.7 million. Those numbers are up slightly from the projected $1.849 million in property tax revenue and $1.4 million in the 2021-22 budget....



  • Sales Tax Report January 2022, City of Willow Park, 18 January 2022 "Thank you for shopping local, Willow Park! Our January 2022 sales tax revenue was $130,453, versus $100,941 in January 2021. That's a nearly 30 percent gain in supporting your local restaurants and retailers. Sales tax helps pay for city services and keeps your property tax down".


Texas Sales Tax

Sales tax accounts for 56% of all tax collections and is the largest source of funding for the Texas state budget. (Willow Park Civics Blog)


Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent. (Comptroller of Texas > Taxes > City Sales and Use Tax)


• What are a Sales and a Use Tax?

Comptroller of Texas > Taxes > Sales and Use Tax

  • Sales Tax is defined as a tax on the sale, transfer, or exchange of a taxable item or service. Sales tax generally applies on the sale to the end user or ultimate consumer. Sales tax is generally added to the sales price and is charged to the purchaser. (Sales Tax Institute)

  • You may see the term “sellers use tax” as well, which is another term for sales tax. Seller use tax is a transaction tax, calculated as a percentage of the sales price, and remitted by an out-of-state seller to the state. Sellers use tax only applies to “remote sellers.” Remote sellers are generally defined as businesses who have nexus in the state (such as economic nexus) but who are not based in the state. (TaxJar)


  • Use tax is a nonrecurring tax that is complementary to sales tax and is imposed on the storage, use, or other consumption of tangible personal property or a taxable service in Texas. (Comptroller of Texas > Use Taxes) Use Tax is defined as a tax on the storage, use, or consumption of a taxable item or service on which no sales tax has been paid. Use tax is a complementary or compensating tax to the sales tax and does not apply if the sales tax was charged. (Sales Tax Institute)

  • The definition of use tax is a tax on the storage, use, or consumption of a taxable item or service on which no sales tax has been paid. Use tax is complementary to sales tax, meaning the two are mutually exclusive. Use tax is generally (but not always) collected at the same rate as sales tax. States charge use tax on goods from out of state, where the seller did not have nexus. If the seller doesn’t have nexus, who pays use tax? The buyer. TaxJar


• What is taxable in Texas?

Tangible products are generally taxable in Texas, with a few exceptions.

Comptroller of Texas > Taxes > Taxable Services

The term "taxable services" is defined in Tax Code Section 151.0101, Taxable Services to include 17 broad categories of services. Each category encompasses a variety of specific services. Listed below are the types of services that are taxable, including examples and references to additional information: Amusement Services; Cable Television Services and Bundled Cable Services; Credit Reporting Services; Data Processing Services; Debt Collection Services; Information Services; Insurance Services; Internet Access Services; Laundry, Cleaning and Garment Services; Motor Vehicle Parking and Storage Services; Nonresidential Real Property Repair, Restoration or Remodeling Services; Personal Property Maintenance, Remodeling or Repair Services; Personal Services; Real Property Services; Security Services; Telecommunications Services; Telephone Answering Services; Utility Transmission and Distribution Services;T axable Labor – Photographers, Draftsmen, Artists, Tailors, Etc.


There are exemptions to the sales tax; a few include

  • Most groceries, such as butter, milk, and canned goods (Candy and soda are taxable.)

  • Vitamins, minerals, and medicine

  • Religious items

  • Newspapers

  • Construction or manufacturing equipment

  • Tangible property that’s required to run a data center

  • Any service that’s repairing an item to a useful condition

  • 20% of SaaS sales

In addition, certain types of customers are exempt from Texas sales tax. Government agencies, religious organizations, health facilities, and some non-profits.


• Article: To What Extent Does Your State Rely on Sales Taxes? 20 May 2020, Tax Foundation .org

Article: Texas Sales Tax, in a nutshell, Quaderno, Updated on

Jan 12, 2023



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