FY 2003-2004 Budget Document - Laserfiche WebLink

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As authorized by state law, the City Council has approved certain exemptions to its citizens. Residential homeowners qualify for a homestead exemption that is equal to 20% of their appraised value. Citizens who are over 65 years of age qualify for an additional exemption, which exempts the first $60,000 of assessed value. Additional exemptions are available for the disabled and veterans. For fiscal year 2003-04, the City expects to collect $10.4 million through the ad valorem tax process. The graph below portrays the actual collections for the last four fiscal years, estimated collections for fiscal year 2002-03 and projected collections for 2003-04. Ad Valorem Tax Collections Six Year Comparison 12,000,000 10,000,000 8,000,000 6,000,000 98-9999-0000-0101-0202-0303-04 Tax Collections Another major revenue source that is derived through the taxation process is the collection of In Lieu of Tax payments from companies located in the City's two industrial zones. A description of the in lieu of tax agreements can be found in the "Description of City and Economic Background" section beginning on page 1-21. The City expects to collect $7.2 million from this revenue source. Sales Taxes are generated when goods are sold in the City. The State of Texas is the collecting agency for these taxes and submits to the City the portion the City is due. The current sales tax rate in our jurisdiction is 7.75%, which is comprised of 6.25% for the State, 1% for the City, and ½% for the La Porte Development Corporation. The City estimates the amount it expects to receive from sales taxes based on historical trends. The City expects to collect $2.8 million from this revenue source. The final major revenue source that is derived through taxation is the levying of Franchise Fees to Utilities operating in the City of La Porte. State Law governs the amount of the levy. The City expects to receive $1.6 million from this revenue source in fiscal year 2003-04. 1-3