Gainesville EDC pushes Cooke County to adopt Freeport exemption; court takes no action

Representatives of the Gainesville Economic Development Corporation urged Cooke County commissioners on Tuesday to adopt a Freeport exemption under Texas Property Tax Code §112.51, saying the tax tool is important to retain and recruit warehouse and distribution employers.

Will Preston, vice president of the Gainesville EDC, told the court the exemption applies only to inventory that arrives in the state and is shipped out within 175 days. “Freeport is really important. It's a great economic development tool,” Preston said, adding that the exemption is different from a goods-in-transit exemption and must be applied for through the appraisal process.

The request matters because commissioners were shown county figures the presenters said included a certified tax base of about $7.6 billion and an M&O (maintenance and operations) portion of the rate around 0.194. Preston and William Myers, also with the EDC, provided order-of-magnitude estimates: they said a 100% exemption applied only to the M&O portion at 100% would be roughly $219,000, while applying the full combined tax rate to a full 100% exemption would put the worst-case figure near $400,000. Presenters emphasized those are high-end, worst-case calculations and that actual annual exemptions vary by company based on prior-year out-of-state sales.

Myers said Cooke County is being excluded from some prospect lists because potential tenants expect “triple freeport” participation (city, county and school districts). He and Preston said the exemption could both help existing local industry and make the county competitive for new projects on the I‑35 corridor.

Commissioners focused questions on the size and timing of revenue impacts and on administrative details. Staff and presenters confirmed Freeport exemption applications must be filed annually (the Freeport filing deadline cited was April 1) and that personal property renditions are due April 15. County staff said the exemption percentage is calculated from a company’s prior-year reports of out-of-state sales, producing annual variation; speakers noted one county company did not qualify for Freeport in 2024 because none of its inventory shipped out of state that year.

After discussion about the numbers and calls for a workshop with appraisal staff, school district representatives and industry, a motion to table the item was introduced, discussed and ultimately withdrawn. The court concluded there would be no action on item 7 at this meeting and scheduled further review in the interim.

The county did not adopt the Freeport exemption at this meeting; commissioners asked staff to gather precise numbers and convene stakeholders for a workshop before taking final action.