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<i>- Property tax applies to all real estate, not just businesses, so I'm not sure what this has to do with business taxes.</i> Actually, Texas (or perhaps loc
by rmah 12y ago
<i>- Property tax applies to all real estate, not just businesses, so I'm not sure what this has to do with business taxes.</i>
Actually, Texas (or perhaps local authorities) levies a property tax on all business assets. If you host a website on a server in texas, they will levy a property tax on the server. Sometimes that's paid by the hosting firm. Sometimes, it's passed on to clients.
If you don't believe me, look it up.
- shiftpgdn 12y agoI looked this up and found nothing of the sort. I've run a C-Corp in Texas for 7 years now and I'm quite sure our accountant would have brought this up at some point.
- _delirium 12y agoIt's the "business personal property" tax. Here are Harris County's instructions on it: http://www.hcad.org/Help/BusPersonalProp.asp http://www.hcad.org/Help/BusPersonalProp.asp For taxation purposes, your property is classified as either real property (land, buildings, and other items attached to land) or personal property (items that can be owned but are not attached to land). Tangible personal property that you use to produce income is subject to taxation in the state of Texas. Tangible personal property includes such things as furniture, fixtures, inventories, equipment, motor vehicles, vessels, and aircraft. These items are typically referred to as business personal property.
- vonmoltke 12y agoI did not know such a thing existed. I find it rather surprising. In reading about it, though, none of the money from that tax goes to Austin, either. Additionally, if I am reading the law correctly, all businesses, incorporated or not, are subject to this. Edit: I should also note that, as a resident of Texas, my hypothetical company would have to pay the exact same amount to various Texas tax authorities regardless of where it was incorporated.