Taxation & Finance
Material contained in the summary of Taxation & Finance is provided for informational purposes only and cannot be construed as a commitment.
Assumptions are based on creating jobs and providing a capital investment in Liberty.
Corporate Franchise Tax
The Texas franchise tax is a privilege tax imposed on each corporation and limited liability company chartered/organized in Texas or doing business in Texas. For franchise tax purposes, the term “corporation” also includes a bank, state limited banking association, savings and loan association, limited liability company, professional limited liability company, a corporation that elects to be an S corporation for federal income tax purposes, and a professional corporation.
For more information on Franchise Tax click here.
Sales & Use Tax
The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. The City of Liberty and Liberty County add an additional sales tax of 2.0% making the total combined rate of 8.25%.
There are exemptions for groceries, medicine, property for resale, manufacturing equipment and many items used exclusively on farms and ranches for food production.
For more information on Sales & Use Tax click here.
Ad Valorem (Property) Tax
Texas has no state property tax. Local governments and special taxing districts levy taxes on real and tangible personal property. All property is appraised at full market value, and taxes are assessed by local county assessors on 100% of appraised value.
For more information on Ad Valorem (Property) Tax click here.
Businesses that employ one or more individuals may be subject to the state unemployment tax.
New employers pay a tax rate of 2.7% of the first $9,000 of each employee’s annual compensation.
For more information on Payroll Costs click here.
Hotel/Motel Occupancy Tax
A tax is imposed on a person who pays for a room or space in a hotel costing $15 or more each day. Local hotel taxes apply to sleeping rooms costing $2 or more each day.
Tax revenue generated funds programs that promote tourism. Funds may be used for both advertising and operational expenditures, as long as the primary purpose of the event is to attract out-of-town visitors.
Liberty has 3 hotels with 119 rooms for business and leisure visitors.
For more information on Hotel/Motel Occupancy Tax click here.
“Liberty is the perfect mix of rural charm and suburban convenience. Located minutes away from downtown Houston or Beaumont, Liberty is situated between the largest refining and petrochemical centers in the nation, Port of Houston—the nation’s second largest port, Bush Intercontinental Airport, and the world-renowned Texas Medical Center. Come live the American Dream.”