Texas communities tax business inventory at the same rate as land, buildings and equipment. However, some cities, like Lockhart, grant the Triple Freeport Exemption from all three taxing entities, the City of Lockhart, Caldwell County and the Lockhart Independent School District.
The exemption covers tangible goods, excluding services and petroleum products, which are detained in the state for purposes of assembling, storing, manufacturing, processing, or fabricating by the person who acquired or imported the property. To qualify for the exemption, the goods must be transported out of state no later than 175 days after the date the owner acquired or imported the property.
The owner must file an application with the Chief Appraiser by April 30 of each year the exemption is sought. The Caldwell County Appraisal District provides information and the application for Freeport Exemptions.
Foreign Trade Zone 183
Goods that enter a Foreign Trade Zone are not subject to Customs duties or ad valorem taxes until they are brought out of the zone for sale in the US market. Goods shipped directly to foreign destinations from the zone are exempt from duty payments. Foreign Trade Zone 183 was recently reorganized to include Caldwell County.