• Property Tax Rebate (City): The City of Taylor can provide your company a property tax rebate. The tax rebate period would start the first year that personal or real property is assessed by the Williamson Central Appraisal District. The rebate period is based on ten (10) years up to 50 percent.
  • All personal property (machinery and equipment) is assumed to be depreciated at a ten (10) year life cycle.

• Property Tax Rebate (County): The City and Taylor EDC can assist your project in applying to the County for tax rebate. Historically, county tax rebates must be approved by the County Commissioners Court. No tax rebate requests submitted to the County has been rejected within the last 10 years. Taylor EDC staff will contact the county commissioner’s office if you wish to proceed with discussions with Taylor.

• Tax Abatement (School District Property Value Limitation): The Taylor Independent School District is enabled by House Bill 1200 (Chapter 313) to provide a limitation of property values on real and personal property (not land) for investments greater than $60 million at a cap of $60 million value for a period of eight years, plus an additional credit based on the first two years of taxes paid during the qualifying period. Unless Project Food initiates a substantial building construction, the project likely will not qualify for this program.

• Enterprise Zone: The Taylor site is located in a Texas Enterprise Zone which provides additional State incentives to the company such as a refund of State sales and use tax paid (6.25 %) for building materials, machinery and equipment, electricity and natural gas purchased and consumed in the normal course of business.
  • For sites located within an enterprise zone, the company commits that at least 25% of their new employees will meet economically disadvantaged or enterprise zone residence requirements.

• Freeport Exemption: The City of Taylor participates in the Freeport Exemption. This program allows companies to be exempt from personal property tax items in their inventory on January 1 that 1) will be forwarded out of Texas within 175 days of the date you acquire them or bring them into Texas and 2) are in Texas for assembling, storing, manufacturing, processing or fabricating purposes. (The company must file an application each year for this exemption.) Williamson County has also initiated the establishment of a Freeport Exemption program, but is still in the development stages.

• City Sales Tax Refund: The City of Taylor receives 2% of the 8.25% sales tax collected by the State of Texas on eligible items. During the construction phase and continuing throughout the normal course of business, your company will pay this sales tax. Some of the sales, i.e. building materials, machinery and equipment, electricity and natural gas purchased and consumed in the normal course of business would be refunded through the Enterprise Zone program.
  • The City of Taylor has allocated one-half of one percent of sales tax revenues to property tax reduction, as approved by the voters of Taylor, so this revenue is not subject to refunds. Another one-half of one-percent of sales tax receipts are dedicated as a 4A sales tax to the Taylor EDC. We can calculate this benefit when it is determined approximately how much sales and use taxes would be collected by your project for sales to customers in Texas.

State Sales Tax Exemptions:

• Manufacturing Machinery & Equipment - Leased or purchased machinery, equipment, replacement parts, and accessories that have a useful life of more than six months, and that are used or consumed in the manufacturing, processing, fabricating, or repairing of tangible personal property for ultimate sale, are exempt from state and local sales and use tax. Texas businesses are exempt from paying state sales and use tax on labor for constructing new facilities. Texas businesses are exempt from paying state sales and use tax on the purchase of machinery exclusively used in processing, packing, or marketing agricultural products by the original producer at a location operated by the original producer.

• Natural Gas & Electricity - Texas companies are exempt from paying state sales and use tax on electricity and natural gas used in manufacturing, processing, or fabricating tangible personal property. The company must complete a “predominant use study” that shows that at least 50% of the electricity or natural gas consumed by the business directly causes a change to a product.