Tarrant County Taxes for Businesses

Tarrant County is within the state of Texas and includes part of the greater Dallas/Fort Worth metro area. Tarrant County offers a favorable climate for the operation of businesses in multiple industries. Tax rates for businesses are comparable or less than other areas of the country.

Sales and Use Taxes

All Texas businesses are required to collect a 6 percent state sales tax plus the local sales tax on all tangible personal property. The Texas Comptroller of Public Accounts defines tangible personal property as "personal property that can be seen, weighed, measured, felt, or touched or that is perceptible to the senses." Services are excluded from the tax. A number of goods that are considered necessities are exempted from sales tax: groceries, baby formula, medications and other medical items. Sales tax is collected from the consumer at the time of the sale by businesses and then paid to the state and local authorities.

Property Taxes

Property taxes are paid on real estate owned by businesses, or are indirectly paid through lease payments to landlords. The actual property tax rate varies according to the actual address of the business, as other taxing jurisdictions such as school districts and cities will assess rates included in the total tax.

Business Personal Property

Texas does not have a state corporate income tax, but does collect a business personal property tax. All businesses in Texas pay taxes on personal property used in the course of business. Personal property includes computers, equipment, furnishings and other items used in the course of business. The business personal property tax is primarily a state tax that also includes an additional percentage for localities within Tarrant County.

Texas Franchise Tax

The Texas Comptroller of Public Accounts charges a franchise tax or “a privilege tax imposed on each taxable entity chartered/organized in Texas or doing business in Texas.” A tax of 1/2 percent up to 1 percent of gross receipts is charged to corporations, partnerships and non-profits.

Miscellaneous Texas Taxes

Some businesses within Texas are subject to state taxes and fees unique to their industry, such as the natural gas tax, manufactured housing tax, loan administration fees, battery sales fee, cigarette and alcohol taxes, coin-operated machines tax, sexually oriented business fee, hotel and auto lease taxes, oyster sales fee and many more.

Car Dealer Taxes

Automotive dealers within Tarrant County are subject to a vehicle inventory tax that is assessed and due each month to the county. Dealers file a monthly form that summarizes the inventory, and they pay taxes based on that month's inventory. At the end of the year they must also file an annual report that reconciles any differences from the previous year's monthly reporting.

References

• Texas Comptroller of Public Accounts: Texas Sales Tax Frequently Asked Questions
• Texas Comptroller of Public Accounts: Overview of Texas Taxes
• Texas Comptroller of Public Accounts: Texas Franchise Tax Rates
• Tarrant County: About the Tax Assessor/Collector
• Texas Comptroller of Public Accounts: Texas Franchise Tax

Resources

• TaxAdmin.org: Range of State Corporate Income Tax Rates
• Tarrant County Appraisal District: Tax Rates and Other Items of Interest
• TaxFoundation.org: The Facts on Texas's Tax Climate
• O'Connor and Associates: Texas Business Personal Property Rendition and Taxation