Westlake's property tax rate is $0.185 per $100 of value. The town plans to keep it there for fiscal year 2027, which runs October 1, 2026 through September 30, 2027. That rate is possible because homeowners pay only a small part of the town's budget. The rest comes from commercial land, and on much of that land the allowed uses were written into zoning long before the nearest homes were built. The proposed Circle T Data Center on U.S. 377 shows what this means in practice. For anyone buying near Westlake's edges, the zoning map shows what the empty field next door can legally become, and it can matter as much as the tax rate.
A 1998 zoning map and a 2015 fence line
PowerHouse Data Centers has proposed a four-building data center campus at the northeast corner of U.S. 377 and Westport Parkway. Town documents call it the Circle T Data Center. The site covers about 88 acres. It sits in Westlake's southern limits, next to the Marshall Ridge subdivision in Keller.
The town gave its account of the timeline in an August 6 post titled "The Truth About Westlake's Data Center." It says the parcel has been zoned for commercial and industrial use since 1998. The land that is now Marshall Ridge was also zoned commercial until Keller rezoned it residential in 2006. In 2015, a second Keller ordinance rezoned more land and added 15 homes directly along the fence line of the Westlake tract, which kept its commercial and industrial zoning.
Under the town's Planned Development District 3-8, a data center was already a permitted use. So when the Planning & Zoning Commission met on August 4, it could only decide whether the site plan met the adopted development standards. Whether a data center belonged on the land was not on the table. The town says the same limit applies to Town Council. Council votes only on a development agreement and "does not have the authority to deny the use once the application has been accepted."
The commission approved the site plan with three conditions:
- Sound barrier walls at least 8 feet tall, or tall enough to block the view, along the full southern boundary except the entry drive
- Sound walls or acoustic treatment around cooling towers, generators, fans and similar equipment
- Evergreen and hardwood trees of at least 3-inch caliper along the full southern property line
Community Impact reported that the building footprint is 506 feet from the property line next to homes on Llano Court in Keller, with a 220-foot landscape buffer on the south side. The closest Westlake house is more than 1,200 yards away. The homes closest to the project were built after the zoning that allows it. In 2015, the land behind them was a field, but the zoning already permitted commercial and industrial uses.
Why the town's budget depends on this kind of land
Westlake's fiscal year 2027 General Fund budget shows why commercial land matters so much.
| FY2027 General Fund revenue | Amount | Share |
|---|---|---|
| Sales tax | $15,075,000 | about 66.5% |
| Property tax | $3,715,000 | about 16.4% |
| Other taxes | $800,000 | about 3.5% |
| Permits, services, fines, miscellaneous | $3,079,725 | about 13.6% |
| Total | $22,669,725 |
Property tax brings in about one dollar of every six. Sales tax brings in about two of every three. The budget also projects $14,878,123 in spending, which leaves room in the General Fund. The town expects the average homestead tax bill to drop by $442.
The data center fits this model. The town says the project creates a "financial opportunity that reduces reliance on residential taxpayers." WFAA reported the town's estimate that the project would raise town revenue by 14 percent. The town has not published the dollar figures or the time period behind that percentage. Under the development agreement that went before Council on August 17, PowerHouse would also pay $914,000 toward renovating the town's nearby pump station.
The land a town relies on for revenue is often land zoned for commercial or industrial use. In Westlake, some of those tracts border neighborhoods, including neighborhoods in other cities.
Sales tax arrives unevenly
When two-thirds of a budget comes from one source, how that source behaves matters. The Texas Comptroller's public allocation dataset shows how much Westlake's monthly payments moved in summer 2026:
- July 2026: $1,319,247.74, down 35.72% from the same month a year earlier
- August 2026: $1,601,988.47, up 66.09%
- September 2026: $1,196,932.52, down 31.66%
Total payments for calendar 2026 through September were $13,064,807, compared with $13,053,659.23 for the same months of 2025. That is an increase of 0.08%. Large swings from month to month have added up to a flat year.
Two points explain the data. First, allocations generally reflect sales made two or more months earlier, so each payment shows when tax was remitted, not what happened in that month. Second, the Comptroller publishes only citywide totals, so no public source shows which businesses produce Westlake's receipts. Even so, the budget assumes more sales tax than last year's adopted figure. The fiscal year 2027 plan forecasts $5.5 million more than the fiscal year 2026 adopted budget, based on modest growth over current-year receipts. When a revenue stream moves this much from month to month, a town has good reason to want steadier sources. A large property-tax payer on commercial land is one of them.
Decisions still pending this fall
Several items will affect Westlake's land use and costs over the next two years.
The data center agreement. A Tarrant County judge's temporary restraining order kept Council from voting on August 17, and Council unanimously tabled the agreement. The order was extended at an August 26 hearing. Judge Kimberly Fitzpatrick dissolved it on September 25. An October 23 hearing is set on the lawsuit filed by the Lakes at Marshall Ridge homeowners association. The town's September 15 Council recap covers the budget and the police contract but does not mention a vote on the agreement. Construction cannot start until the agreement passes.
A new comprehensive plan. On September 15, Council chose LJA to write the town's comprehensive plan. The town's request for qualifications calls for a full replacement of the 2015 plan. The new plan must include updated future land use maps, a review of the zoning districts in the Unified Development Code, and a list of "catalyst properties." It must also include public participation in every phase. The town expected the work to take about 16 months. No public meeting dates have been posted yet. This plan is the place where land use on remaining open tracts will be discussed in public.
More Circle T development. The Star-Telegram reported in February that Hillwood plans a 44-acre project called Front 44 on empty Circle T land between the Charles Schwab offices and the SH 170/SH 114 fork. Plans include a 150-room hotel, a 54,000-square-foot office building, shops and restaurants, with completion expected in 2027.
Police services. On September 15, Westlake voted not to renew its police services contract with Keller. The current contract runs through September 30, 2028. The fiscal year 2027 budget lists $1,484,161 for police. Roanoke has submitted a proposal for law enforcement services. The Star-Telegram's September 21 report did not include its terms. Whatever replaces the contract will be paid for out of the same budget described above.
Before you write an offer near a Westlake edge
The Marshall Ridge situation applies to any property next to open land.
- Find out how adjacent tracts are zoned. Look up the zoning district, including any planned development designation, and read its list of permitted uses. A pasture zoned PD can allow anything that PD lists.
- Read the uses allowed by right. In Westlake's view, a data center with conditions makes a better neighbor than the "industrial, distribution, warehousing, and manufacturing uses allowed by right" on the Circle T parcel. If a use is allowed by right, it may never go to a public vote.
- Check zoning across city limits. Westlake, Keller, Southlake and other neighbors each have their own zoning maps. A home's own city may not control the land behind it.
- Follow the comprehensive plan. When LJA's process opens for public input, the future land use maps will show how the town expects open tracts to develop.
FAQ
Does the data center change Westlake's tax rate? The fiscal year 2027 rate stays at $0.185 per $100. The town describes the project as reducing reliance on residential taxpayers, but it has not published dollar figures for its 14 percent revenue estimate.
Can Westlake's Council still stop the data center? The town says Council votes only on the development agreement, not on whether the land can be used for a data center. The lawsuit filed by the Lakes at Marshall Ridge homeowners association has a hearing on October 23.
Where does Westlake's sales tax come from? The Comptroller's public data shows only citywide totals. No public source credits the receipts to any particular company.
At Jeannie Anderson Group, our pricing work for Westlake homes includes reviewing the zoning on nearby tracts, so the valuation reflects what surrounds the property as well as the property itself. If you own near open land in Westlake and want to know how the land around you affects your price, request a Luxury Home Valuation.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
