Hitchcock and Texas have a tax structure that’s friendly to business including no state income tax. Tax incentives, abatements, and training programs are all designed to attract business to our community.
Sales and Use Tax
The state levies a sales and use tax of 6.25% on sales of tangible personal property and certain services. The City of Hitchcock and Galveston County add an additional sales tax of 2.0% making the total combined rate of 8.25%. There are exemptions for groceries, medicine, property for resale, manufacturing equipment and many items used exclusively on farms and ranches for food production.
Ad Valorem (Property) Tax
Texas has no state property tax. Local governments and special taxing districts levy taxes on real and tangible personal property. All property is appraised at full market value, and taxes are assessed by local county assessors on 100% of appraised value
Qualified manufacturing equipment and machinery, whether inside or outside of a State-designated Enterprise Zone, is 100% exempt from state and local sales tax paid on purchases of qualified machinery and equipment. Included in the criteria is that the machinery or equipment be used directly in the manufacturing, processing, fabrication, or repair of tangible personal property to be sold. These exemptions are based on compliance with statutes administered by the Texas Comptroller of Public Accounts. The business files a certificate of exemption with the State Comptrollers office to receive the exemption.
Texas Capital Fund
The Texas Capital Fund program provides loans and grants to non-entitlement communities on behalf of businesses that hire 51% low- and- moderate-income persons. Businesses locating in Galveston County may be eligible to request that the county submit an application on their behalf. Applications are taken quarterly and there is a competitive process in place for award of the program funds. For more information click here.
Texas Capital Fund Infrastructure Grant Program
The Texas Capital Fund Infrastructure Grant Program provides direct grants to eligible communities for specific projects in amounts ranging up to $1,500,000 for water/wastewater facilities, public road construction, natural gas lines, electric power service, and railroad spurs required by a business for a relocation. For more information click here.
Texas Capital Fund Real Estate Development Program
The Texas Capital Fund Real Estate Development Program provides between $50,000 and $1,000,000 for acquisition, construction or rehabilitation of real estate. Funds must be used for real estate development to assist a business that commits to create and/or retain permanent jobs, primarily for low and moderate-income persons. The real estate and/or improvements must be owned by the community and leased to the business. For more information click here.