Freeport Tax Exemption

The Freeport exemption exempts taxes on eligible inventory that is transported out of the state of Texas within 175 days of acquisition. The goods must first be in Texas only for a limited purpose, such as for storage or factory processing.

This exemption was proposed to enhance the ability of certain areas to attract warehouse and distribution center facilities by offering a special property tax exemption for the goods they typically handle. Some types of companies currently receiving Freeport tax exemptions include auto makers, computer manufacturers, beverage producers, iron works, warehousing and distribution facilities, and medical supply companies.

 Freeport Tax Exemption form