Taxes

Texas business friendly is the mantra which translates into one of the best business climates in the United States.

Property Tax:  The State of Texas does not levy a state property tax on real and tangible personal property. All property is appraised at full market value and assessed on 100% of appraised value and inventory is taxed at the same rate.   The City, County and ISD's have low property tax rates and a low combined rate of all taxing entities.  Below are property taxes for a location in the Commerce Centre of Granbury.  

Sales and Use Tax:  The State of Texas levies a sales and use tax of 6.25 percent on sales of tangible personal property and certain services. Additionally, cities, counties and transit authorities may add to the rate for a maximum combined state and local rate of 8.25 percent. The City of Granbury Sales and Use Tax rate is 1.5 percent. The Hood County Sales and Use Tax rate is 0.5 percent.   No Sales and Tax is levied on water or wastewater or on labor used in new construction projects.  

Corporate & Personal Income Tax:  With no state or local corporate or individual income tax, Texas has one of the lowest tax burdens in the U.S. Texas also has no property tax at the state level as well no unitary tax.   

Texas Franchise Tax:    The Texas Franchise Tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas.   The tax applies to corporations, limited liability companies, partnerships (general, limited and limited liability), business trusts, professional associations, business associations, joint ventures and other legal entities organized in Texas or that do business in Texas. The tax is not imposed on sole proprietorships, general partnerships directly owned by natural persons, and other specified entities such as certain financial services businesses, nonprofits, and others.  In addition, a corporation in Texas engaged solely in the business of manufacturing, selling, or installing solar energy devices is exempted from the franchise tax. There is no ceiling on this exemption, so it is a substantial incentive for solar manufacturers.  Taxable entities with revenues of $1,180,000 or less owe no tax. Taxable entities who calculate their tax due to be less than $1,000 will owe no tax. However, all taxable entities, including those who will owe no tax, must file a return. The revised tax base is the taxable entity's "margin." Margin equals the lesser of a taxable entity's: total revenue minus cost of goods sold, total revenue minus compensation, total revenue minus $1 million, or 70% of total revenue. Taxable margin will be the lowest of the four computations times the apportionment factor. An alternative to computing margin is available to taxable entities with revenue of $10 million or less. The tax rate is 0.75% of margin for most taxable entities. The tax rate is 0.375% for entities primarily engaged in retail and wholesale trades (as defined in Divisions F and G of the 1987 Standard Industrial Classification Manual), excluding retailing or wholesaling of utilities, including telecommunications services, electricity or gas.  

Texas Telecom Tax: 6.25%  Sales Tax on Telecommunications Services (texas.gov)

Texas Fuel Tax (Gas & Diesel):  20%

Unemployment Insurance:  Businesses that employ one or more individuals may be subject to the state unemployment tax. New employers pay 2.7% on the first $9,000 of wages per employee. A minimum of six quarters is required to obtain an experience rating in order to determine an employer's revised rate. The Texas Workforce Commission indicates that the effective tax rate in 2019 ranges from a minimum of 0.36% (paid by 65.6% of employers) to a maximum of 6.36% (paid by 5.3% of employers) for experienced-rated accounts and the average experience tax rate is 1.06%.

Workers' Compensation:  Texas' workers' compensation is managed by the Division of Workers Compensation (DWC) of the Texas Department of Insurance. Workers compensation is not mandatory in Texas.  The Texas Workers' Compensation Act limits a business' liability for job-related injuries if the employer has a workers' compensation policy from a licensed insurance carrier or has been certified to self-insure by the Texas Workers' Compensation Commission. Only companies specifically licensed to sell workers' compensation in Texas may legally offer such insurance. They may sell only the standard policy adopted by the Commissioner of Insurance.

Lodging Tax:  Granbury - 7%. Texas - 4%.

Granbury Fee Schedule:  2019 Fee Schedule Versions.xlsx (granbury.org)

Find other local tax information here:  Tax Information | Granbury, TX - Official Website