Limiting Taxes on Property
The Texas Economic Development Act provides an ten-year limitation on the taxable value of the property extended to a taxpayer who agrees to build or install property and create jobs. The value limitation applies to the local school district maintenance and operations tax (M&O) portion of the property tax and varies by school district. To participate, the company must apply to the effective school district. Value Limitation Tax Credits are administered through the Comptroller of Public Accounts.
Goods En Route
A freeport exemption is a property tax exemption. A community may choose to offer the freeport exemption for various types of goods that are detained in Texas for a short period of time. Freeport property includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts. Freeport property qualifies for an exemption from ad valorem taxation only if it has been detained in the state for 175 days or less for the purpose of assembly, storage, manufacturing, processing, or fabricating. For certain aircraft parts, a community, by official action, may extend the deadline to 730 days. For detailed information, please visit Texas Constitution Article 8, Section 1-J. The freeport exemption is administered through the Comptroller of Public Accounts.