Hudson Oaks’ business climate is primed for retail growth and expansion. City leaders are looking not just for developers, but for development partners looking to help create a new, innovative and aggressive city. They envision a place with a strong sense of community, beautiful tree-lined boulevards, and distinctive architecture that will help to define the character of Hudson Oaks.
No city property tax, a favorable state tax system, aggressive city incentives and a business friendly environment make Hudson Oaks the perfect setting for retail expansion.
Taxes in Texas
Businesses and individuals alike find the Texas tax system very favorable; enjoying the benefits of no personal income tax, state property or unitary tax. In fact, Texas is one of only seven states without a personal income tax.
The sales and use tax accounts for over 50% of total state revenue, while other major revenue generators include the motor fuel tax, oil and natural gas severance taxes, and the corporate franchise tax. At the local level, revenues are generated primarily by an ad valorem property tax and local sales tax, although Hudson Oaks does not levy a city property tax.
Texas has no state level property tax, and county, school and municipal property taxes are based on real estate value and improvements, as well as tangible personal property such as production machinery and equipment. Hudson Oaks does not levy a city property tax, resulting in a tax savings of 20% compared to neighboring cities.
State Income Tax
Texas has no personal income tax. The corporate franchise tax includes an income component.
Corporate Franchise Tax
Incorporated businesses chartered and authorized to do business in Texas are subject to the franchise tax. Corporations pay either $2.50 per $1,000 in taxable capital, or a 4.5% tax on earned surplus, whichever amount is greater. Taxable capital includes stated capital, surplus, deferred income taxes and non-current employee benefits allocated to Texas on a gross receipts basis. Earned surplus is federal taxable income plus officers’ and directors’ compensation allocated to Texas on a gross receipts basis.
The state sales tax rate is 6.25%, with Hudson Oaks assessing an additional 1.5% and Parker County assessing an additional .5%. This tax is levied on the sale, rental and use of most tangible property, labor and selected services.