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.
The exemption applies to inventory on hand starting January 1 that:
Will be forwarded out of Texas within 175 days of the date you acquire it or bring it into Texas
Is in here for assembling, storing, manufacturing, repair, maintenance, processing or fabricating purposes
Remains under your continuous ownership from the time you bring it into the state until it is forwarded out of the state
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.