Taxes & Incentives
Throughout Texas, property taxes are levied on real and tangible (including inventory) personal property at the local level. All property is appraised at full market value and assessed by the local appraisal districts. The total tax rate is the sum of all local taxing jurisdictions/units including the county, city, school, and special district.
Property tax rates in the City of Schertz are among the lowest in the San Antonio and Austin regions. Even though our property tax rates are low, the City of Schertz provides state-of-the art utilities, roads, emergency services, and educational facilities. The City of Schertz is located within three counties Guadalupe, Comal and Bexar. Each area has its own taxing levy and as result the total tax rate is different depending upon where the property is located. The Local Property Tax Rate tables contain a general property tax rate for each county per $100 valuation.
|City of Schertz|
|City of Schertz||$0.491100|
Sales and Use Tax
Throughout Texas, a sales and use tax is imposed on all retail sales, leases and rental of most goods, and taxable services. The City of Schertz sales and use tax rate is 8.25%. The state collects 6.25%, the City collects 1.5% and the county collects 0.5%. There are many exceptions to the sales and use tax that can be found at www.window.state.tx.us. Some of the exceptions include: new and used manufacturing equipment, electricity and gas when more than 50% is used during the manufacturing process, and tangible personal property which is part of a product or will be consumed when producing a product.
Personal Income Tax
There are no income taxes in Texas.
Unemployment Insurance Tax
The unemployment insurance tax is paid on taxable wages up to $9,000 per employee. Initially, a new employer is charged 2.7% or the industry average for six calendar quarters to obtain an experience rating in order to determine an employer’s revised rate which range between 0.54% to 7.35%. The average experienced rate is less than 2%.
Economic Development Incentives
The City of Schertz offers many local development incentives that can be used to help offset the cost associated with the location and expansion of a eligible business to the community. As such, our Economic Development team is prepared to help you realize these opportunities and incentives that may be available.
Below you will find a listing of Local and State incentives offered for the City of Schertz, click on any of the incentives and find out more information. Further, you will also find links to the City of Schertz Economic Development Incentive Policy along with an application to apply. If you have any questions or need additional information as to how to apply please contact us.
Property Tax Grants
- The SEDC will coordinate with the City and Country to provide a local property tax abatement. Abatement percentages and terms are based on job creation, wages, targeted industry and project location. The City collects $4,911 per $1 million of taxable value and Comal County collects $2,928 per $1 million of taxable value and Guadalupe County collects $3,311 per $1 million of taxable value.
Impact Fee Matching Fund and Development Incentive Fund
- Under Chapter 380 of the Local Government Code, the SEDC may provide cash grants for qualified projects. The funds can be used as a cash grant or to reimburse development fees.
- The City will designate a singe point of contact that will work diligently to expedite the development review and permitting process.
Freeport Tax Exemption
- The Triple Freeport designation allows schools, cities and counties to exempt business inventory from taxes if goods are shipped out of state within 175 days. In Schertz, all three entities have enacted the exemption, allowing complete Freeport Tax
Exemption on all eligible inventories.
Foreign Trade Zones
- The City of Schertz is located within FTZ #80 which is administered by the City of San Antonio, FTZ is a federal program targeted to create jobs from the realization of cost savings from delayed or forgiven tariff s. FTZ’s are designated sites in or near a U.S. Customs port of entry where foreign and domestic merchandise in generally considered to be in international trade.
The Texas Enterprise Fund
- The State of Texas has allocated $90 million to be used as the State’s deal-closing fund. The TEF can be used for a variety of economic development projects, including infrastructure development, community development, job training programs, and business incentives. Previous qualified projects have received $1000-$8,000 per new job created.
- Texas provides several types of grants to communities and businesses to fund a wide variety of projects, from public infrastructure projects in non-entitlement communities to cancer research and laboratory facility construction:
- The Governor’s University Research Initiative (GURI)
- Texas Capital Fund Infrastructure Program
- Texas Capital Fund Real Estate Development Program
- Defense Economic Adjustment Assistance Grant Program
- Moving Image Industry Incentive Program
- Cancer Prevention and Research General Obligation B
Workforce Training and Skills Development Fund
- Texas’ premier job-training program providing training dollars for Texas businesses and workers. The program is administered and funded by the Texas Workforce Commission and the training is provided by the Alamo Colleges, our local community college. In recent allocations, area companies have received $1,800 per employee, grants for a single business are limited to $500,000.
Workforce Solutions Alamo (WSA)
- The WSA off ers no-cost testing and screening services designed to provide your company with an ongoing pool of qualified, motivated job applicants. WSA also provide information and assistance in accessing employment tax incentive programs,
arranging training for incumbent workers, providing referrals to education and training providers, development customized and on-the-job training programs, and assisting in accessing State training programs. Th is service can equate to a cost savings of up to $3,000 per new job created.
Incentive Application Process
1. Contact staff to discuss your project and review possible incentive programs that might be applicable to your project.
2. Staff completes an impact analysis for your project.
3. SEDC Board of Directors review the project and, if applicable, creates an incentive agreement.
4. City Council must authorize the program and expenditures associated with the incentive agreement.