Highly Favorable Taxes

In addition to being in a state without any personal income tax, state property or unitary tax, Amarillo also has a “Freeport” designation. This makes businesses exempt from inventory property taxes of goods exported.

Freeport Benefit

The exemption applies to inventory on hand starting January 1 that:

  1. Will be forwarded out of Texas within 175 days of the date you acquire it or bring it into Texas
  2. Is in here for assembling, storing, manufacturing, repair, maintenance, processing or fabricating purposes
  3. Remains under your continuous ownership from the time you bring it into the state until it is forwarded out of the state

Sales Tax

Exemptions in the sales tax statutes include:

  • Machinery and equipment used directly in the manufacturing process or for pollution control
  • Items that become a component part of a manufactured item, are consumed in the manufacturing process or delivered out of state

The state sales tax rate is 6.25%, with Amarillo assessing an additional 2%. This tax is levied on the sale, rental and use of most tangible property, labor and selected services.

Corporate Franchise Tax

The franchise tax rate is 0.95% for most entities. Qualified wholesalers and retailers pay 0.475% and entities with $10 million or less in total revenue (annualized per 12-month period on which a report is to be based) pay 0.575%.

Connect With Us

Doug Nelson

Interim President & CEO

Brian Jennings, CEcD, EDFP

Senior Vice President, Business Development

Steve Pritchett, CEcD

Vice President, Business Development

Reagan Hales

Director, Marketing & Communications

Andy Arias

Servicing Officer, Financial Services

Chris Lyles

Office Administrator