Local Tax Rates
Midland County has a total of six taxing entities. Dependent upon the firm’s location, city taxes may not be imposed. Following are the 2019 tax rates per $100 of assessed value.
Texas has no personal income tax.
Corporate Franchise Tax
Texas imposes a franchise tax, frequently referred to as a “margin tax” on taxable entities organized or chartered under Texas law, and foreign (non-Texas) entities that do business in Texas. In general, an entity is subject to the tax if state law limits the owner’s liability. The Texas Franchise Tax rate is 1% (.5% for wholesale and retail sellers only), begins with an entity’s total revenue, and allows applicable deductions for the largest of cost of goods sold, compensation, or 30% of the total revenue. The computed margin is apportioned to Texas, and the tax rate is applied. Alternative, less complicated formulas may be elected by taxpayers with total revenue of $10 million or less.
A taxable entity, including a combined group, qualifies to file a No Tax Due Report if it meets one of the following criteria: 1) has zero Texas receipts, 2) qualifies as a passive activity for Texas Franchise Tax purposes, 3) is a real estate investment trust (REIT) that meets specific qualifications, or 4) has total annualized revenue below the no-tax-due threshold ($1,000,000 for reports due after January 1, 2010 and before January 1, 2012).
Sales & Use Tax
There are three Sales & Use Tax rates. A location outside of the city exempts the firm from the city rate. Following are the current rates.
|Sales & Use Tax|