Freeport Exemption exempts certain types of tangible personal property from taxation that is:

1. acquired in or imported into Texas to be forwarded out of state;

2. detained in Texas for assembly, storing, manufacturing, processing, or for fabricating purposes by the person who acquired or imported it; and

3. transported out of state within 175 days after the date the person acquired or imported it into Texas.

Because oil, natural gas, and other petroleum products are not considered Freeport goods, they are not eligible for the exemption and therefore remain taxable.

Benefits:
A company that manufactures or distributes a product from within a jurisdiction which has been designated a Freeport will realize a significant savings if it serves national or international markets.

Qualifications:
The Dumas Independent School District has passed the exemption. The amount of the goods in transit exemption for each year is normally based on the percentage of inventory made up by such goods last year. A one page application requests a company to identify property owned on January 1st of each year (or September 1st of the preceding year if the company receives a September, inventory appraisal). A company must apply for the exemption each year from the Moore County Appraisal District between January 1st and May 1st.
Contact:
Dumas Economic Development Corporation
P.O. Box 595
Dumas, Texas 79029
(877) 934-3332 or (806) 934-3332