Freeport Tax Exemption

Utility District Breaks


The City of Missouri City, Fort Bend Independent School District and all utility districts offer a freeport tax exemption on goods in transit (or "freeport goods") from ad valorem taxation. Freeport goods are inventories acquired or brought into the state by businesses and held for no more than 175 days before being shipped out of state.

Any business or industry that assembles, manufactures, processes, stores, maintains, fabricates or distributes their products in Texas and ships them out of state within a 175-day cycle are eligible. The Freeport Exemption will apply to the percentage of raw materials, goods-in-process and finished products that meet this requirement.