Sales Tax in Southlake

In Southlake, the total sales tax rate is 8.25%. Of that, 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 received by the City 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). These three units of the City of Southlake were voted on by the residents, but state law determines how that money is spent. We can only use it for the purposes outlined in the original referendum presented to the voters.  In Southlake’s case, it means that sales tax revenues support crime prevention, park development, construction and operations of The Marq Southlake and economic development:

Community Enhancement and Development Corporation

The Community Enhancement and Development Corporation was formed when Southlake voters approved the special levy of a 3/8 cent sales tax in 2015. The funds are dedicated toward the construction of Phase II of The Marq Southlake, a community events and recreation facility. Funds are also used to support operational expenses related to The Marq as well as special economic development projects.

Crime Control and Prevention District (CCPD)

The half-cent sales tax collection to fund the Crime Control and Prevention District began in April 1998, with the first sales tax check received in June 1998. State law provides that a district’s initial life is limited to five years. Voters may continue the district by approval of a referendum. In February 2002, Southlake voters approved the continuation of the CCPD for 15 years and in May 2015, voters approved the reduction of the sales tax to 1/8 cent. This fund has been used to build facilities for and support the Department of Public Safety. This fund also supports the City’s School Resource Officer Program.

Southlake Parks Development Corporation (SPDC) 

The Southlake Parks Development Corporation was formed when Southlake voters approved the special levy of a half-cent sales tax in the mid-1990s. The half-cent is dedicated toward the acquisition and development of Southlake’s park land. The specific projects are identified in the City’s Capital Improvements Program (CIP). The City may spend the funds for operational or capital projects.