economyEconomic Development

The Freeport and Goods in Transit Exemptions

The Freeport Exemption is a personal property tax exemption for goods that are detained in Texas for 175 days or less. Freeport goods consist of personal property that is “acquired in or imported” into Texas to be forwarded to a location outside of the state.

Goods in transit are goods acquired inside or outside Texas detained for storing purposes and then shipped to another location in or out of Texas within 175 days.

In both cases, the owner of the goods has no direct or indirect ownership of the facility where the goods are stored.

Freeport Exemptions

A freeport exemption (Section 11.251) applies to goods, wares, ores, merchandise and to aircraft or repair parts used by a certified air carrier. Oil, gas and petroleum products (defined as liquid and gaseous materials immediately derived from refining petroleum or natural gas) are not eligible.

For cotton stored in a warehouse (Section 11.437) to qualify for the freeport exemption, the warehouse operator may file a one-time application for the exemption. Property qualifies as freeport goods whether or not the person who transports it out of the state was the person who owned the property on Jan. 1. Taxing units may elect to tax the goods notwithstanding the above.

View Application Form 50-113 (PDF)

Goods in Transit Exemptions

A "goods in transit" exemption (Section 11.253) applies to goods acquired inside or outside Texas, detained for storing purposes by the person who acquired or imported the property, and then shipped to another location in or out of Texas within 175 days. The goods do not include oil, gas or petroleum products or special inventories such as motor vehicles or boats in a dealer's retail inventory. Taxing units may elect to tax the goods notwithstanding the above.

View Application Form 50-758 (PDF)

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Need Help?

For additional information, contact the Data Analysis and Transparency Division via email or at 844-519-5672.