It's the time of year that we bring again, to you attention, the Goods-in-transit exemption which could mitigate your taxing situation.
The property tax exemption that many of our customers have been able to take advantage of in the past has been updated.
House Bill 621 relates to goods in transit, which primarily means business inventory.
The new law allows businesses to exempt from property taxation inventory held at a location the company does not own or control, so long as the inventory is moved, or "turned at least once every 175 days on the average.
For example, say a company produces items for sale only to customers in Texas. The finished goods are moved to a third-party shippers warehouse location elsewhere in the state for order fulfillmen elsewhere in the state for order fulfillment. As orders are received and shipped to Texas Customers, the stock of inventory at the third-party warehouse is replenished.
After January 1 the company will be able to file an application with the appraisal district for tax exemption for the goods in transit held at the shipper's location. The application will require proof of inventory turns and that the applicant neither owns or controls the shipper's physical locaton.
The company's property tax bill for the goods held at the third-party location will be zero, provided everything is in order.
If the company had stored and shipped all of its goods from its own warehouse, under the new law it would not be eligible for the property tax exemption.
A complete copy of the article as printed in the Houston Business Journal is available from our office upon request. Just call or email email@example.com
Dixie Cullen is currently expanding our warehouse facility to be able to service the growing needs of our customers, both current and future. We have begun a 30,000 square foot warehouse expansion.
We're here to help you with all you industrial storage needs.
Dixie Cullen Interests Inc