Texas is one of the few states that has no personal income tax. Instead, most local governing entities rely on property taxes, and to a lesser extent, sales tax.
Property Tax Rates
Property values are set in a four-stage process each year by the Jefferson County Appraisal District, which also administers tax exemptions. Port Arthur has property tax exemptions for homeowners and senior citizens. For information on appraisals and exemptions, call (409) 727-4611 or visit the JCAD web site, www.jcad.org
, which also has a searchable property database.
Most governing entities in Texas levy a property tax with an assessment ratio of 100 percent. These taxes are collected through the Jefferson County Tax Assessor-Collector’s Office. Taxpayers can view their property tax balance and make payments online. More information can be found at www.co.jefferson.tx.us/taxoffice/main.htm
Property Tax Rates are as follows:
|| Tax Rate
| Port Arthur Independent School District
|| $ 1.681
| City of Port Arthur
| $ .775
| Jefferson County
|| $ .425
| Drainage District #7
|| $ .179
| Port of Port Arthur
|| $ .12815
| Property Tax Rates per $100/valuation
|| $ 3.18815
Sales Tax Rates
The State of Texas and other entities levy a sales tax on items that are considered non-essential. In addition, many cities and counties in the state have approved a half-cent sales tax to fund Economic Development Corporations. Port Arthur and the other cities in Jefferson County have such EDCs. Port Arthur’s EDC funds manufacturing and industrial-related projects. The Texas State Comptroller has more information at www.window.state.tx.us/m23taxes.html.
State Franchise Tax
The franchise tax is $2.50 per $1,000 of taxable capital and the amount, if any, by which a tax of 4.5 percent on earned surplus exceeds the tax on capital. The Texas State Comptroller has more information at www.window.state.tx.us/m23taxes.html.
Unemployment Insurance Tax
The tax rate will be applied to the first $9,000 of wages paid each employee. The minimum tax rate is .27 percent and the maximum rate is 6.27 percent. A new employer pays into the fund at the rate of 2.7 percent for 18 months before a rate is established based on the initial 18-month period.
The tax rate is 1 percent for most taxable entities. For entities meeting the following criteria, the tax rate is 0.5 percent:
- the entity is primarily engaged in retail or wholesale trade under division F or G of the 1987 Standard Industrial Classification Manual.
- the total revenue from its activities in retail and wholesale trade is greater than the total revenue from its activities in trades other than the retail and wholesale trade;
- less than 50% of the total revenue from activities in retail or wholesale trade comes from the sale of products it produces or products produced by an entity that is part of an affiliated group to which the taxable entity also belongs, except for those businesses under Major Group 58 (eating and drinking establishments); and
- the taxable entity does not provide retail or wholesale utilities, including telecommunications services, electricity or gas.
Taxable entities with revenues of $300,000 or less will owe no tax. Taxable entities with tax due of less than $1,000 will owe no tax. However, all taxable entities, including those that will owe no tax, must file a report.
Unemployment Insurance Tax
The tax rate will be applied to the first $7,000 of wages paid each employee. The minimum tax rate is 0.008% of the first $7,000.