City of Henrietta and Clay County officials approved resolutions for the continuation of a goods-in-transit tax during their respective meetings Monday.
The goods-in-transit tax is a tariff placed on tangible products held in a warehouse located within a taxing entity. The tax is placed on any goods that have been stored for no more than 175 days before it is shipped.
The tax does not apply to oil, natural gas, petroleum products, aircraft, dealer’s motor vehicle inventory, dealer’s vessel and outboard motor inventory, dealer’s heavy equipment inventory, or retail manufactured housing inventory.
The ordinances do not affect any property currently held in Henrietta or Clay County, but if the resolution were not passed, both entities would miss out on possible future tax revenues.
Henrietta ISD Board of Trustees approved a similar measure Thursday, Nov. 10.
A new statute passed by the 82nd Texas Legislature gave taxing entities until December to approve the resolution.