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.

Liberty Community
Development Corporation


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.

Unemployment Tax

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.








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