Freeport Tax Exemption

The Freeport Exemption is a personal property tax exemption for goods that aredetained in the State for 175 days or less. Locally, the County of Bexar, the City of SanAntonio, the Judson ISD, and the San Antonio ISD offer the exemption to companiesthat deal with goods-in-transit or inventories used in the manufacturing process.

The key qualification requirements are that the property must be in Texas for thepurpose of assembling, storing, manufacturing, processing, or fabricating and that theproperty must exit Texas within 175 days after the acquisition or import of the property.

Freeport goods consist of personal property that is “acquired in or imported” into Texasto be forwarded to a location outside of Texas. However, there is no requirement thatthe initial acquisition or import is for the purpose of export. If a taxpayer acquires orimports the property under the belief that it will remain in Texas, but subsequently shipsthe property out of the state, then the property could qualify as Freeport. The initialintent is not determinative of qualification. Freeport property includes: goods, wares,merchandise, and certain aircraft and aircraft parts. 

To apply, or for more information, please contact our Economic Development team at (210) 335-0667.