Taxes

Property Tax

Taxing Rates and Entities
Brownfield CISD 1.260000
City of Brownfield 0.528845
Meadow ISD 1.251000
City of Meadow 0.542596
Wellman-Union ISD 1.587900
City of Wellman 0.499990
Terry County 0.800000
Terry County Mem. Hospital Dist. 0.310000
South Plains Water Conserv. Dist. 0.025000
Source: Terry County Appraisal District

State Property Tax

Texas has no state property tax.

Source: Texas Comptroller of Public Accounts

Income Tax

Texas has no personal income tax.

Source: Texas Comptroller of Public Accounts

Corporate Franchise Tax

Texas imposes a franchise tax, frequently referred to as a “margin tax” on taxable entities organized or chartered under Texas law, and foreign (non-Texas) entities that do business in Texas. In general, an entity is subject to the tax if state law limits the owners’ liability. The Texas Franchise Tax rate is 1% (.5% for wholesale and retail sellers only), and begins with an entity’s total revenue, and allows applicable deductions for the largest of cost of goods sold, compensation, or 30% of total revenue. The computed margin is apportioned to Texas, and the tax rate is applied. Alternative, less complicated formulas may be elected by taxpayer’s with total revenue of $10 million or less.

Source: Texas Comptroller of Public Accounts

State Sales Tax Exemptions

  • Manufacturing Machinery & Equipment – Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax. Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities. Texas businesses are exempt from paying state sales and use tax on the purchase of machinery exclusively used in processing, packing, or marketing agricultural products by the original producer at a location operated by the original producer.
  • Natural Gas & Electricity – Texas companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must complete a “predominant use study” that shows that at least 50% of the electricity or natural gas consumed by the business directly causes a change to a product.
Source: Texas Comptroller of Public Accounts

The Texas Comptroller’s website, Window on State Government, provides detailed information about state business taxes.