Tax Structure
 

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Property Tax Structure for Entities in the City of El Paso

2005 Property Tax Ratesper $100/valuation
City of El Paso0.696677
El Paso County0.432259
Thomason General Hospital0.187128
El Paso Community College0.132844
El Paso Independent School District1.673500
Ysleta Independent School District1.735903
Socorro Independent School District1.627582
Canutillo Independent School District1.734946

Total Tax Rates for Selected Entities

Total Tax Rates $/$100
City, County, Hospital, EPCC, El Paso ISD 3.122408
City, County, Hospital, EPCC, Ysleta ISD 3.184811
City, County, Hospital, EPCC, Socorro ISD 3.07649
City, County, Hospital, EPCC, Canutillo ISD 3.183854

Sales and Use Tax

State Sales Tax 6.25%
Municipal-City of El Paso 1.00%
County - El Paso County 0.50%
Municipal Transit - Sun City Area Transit Tax 0.50%
Total El Paso Sales and Use Tax 8.25%
State Motor Fuels Tax $0.20/gallon
State Hotel/Motel Occupancy Tax 6.00%
State Motor Vehicle Tax 6.25%

(includes sales tax, rental tax, and interstate motor carrier tax)

Sale of Component Parts to Manufacturers


The state sales tax is only applicable to end users and does not apply to component parts sold to original equipment manufacturers.

Texas Sales and Use Tax Exemptions


To make manufacturing in Texas more competitive, the 1987 and 1989 State Legislatures granted a sales and use tax exemption on machinery and equipment. The exemption program was phased in during 1990 and was completed in 1995.

Machinery and Equipment Eligibility Rules

  • Machinery, equipment, supplies and replacement parts directly used in the manufacturing process are eligible for the exemption. (Test equipment, forklifts and other materials handling equipment do not qualify for the exemption.)
  • Pollution control equipment is eligible for exemption.
  • Equipment must have a useful life of six months or longer.
  • Rented or leased equipment will not qualify for exemption.
  • Improvements to buildings and real estate are not eligible.
  • Any machinery, equipment and replacement parts purchased outside Texas at least one year prior to entry into the Texas operation are not subject to sales and use tax. Eligible machinery and equipment is entirely exempt from local and state sales and use taxes.

Freeport Exemption


Any inventory exported out of Texas within a period of less than 175 days will not be subject to ad valorem taxation.

Franchise Tax


The franchise tax is imposed upon all corporations that do business in the state or are chartered or authorized to do business in the state. It is a tax on the privilege of doing business, measured by net taxable capital and net taxable earned surplus apportioned to Texas. Apportionment is done by using a single gross receipts formula, and allowable deductions apply to both the capital and earned surplus components. The tax rate on net capital assets is 0.25 percent, or $2.50 per $1,000 of net taxable capital. (Taxable capital is computed by adding the corporation's stated capital, as defined by state law, and the corporation's surplus.) The tax rate due on taxable capital assets and on taxable earned surplus, paying the greater of the two amounts. There is no minimum tax, and no taxes are due on liabilities of less than $100.

Net Taxable of Capital.............................................0.25%
Net Taxable of Earned Surplus................................4.50%


Personal & Corporate Income Tax


There is no corporate or personal income tax in Texas.

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