Kilgore Independent School District, the city of Kilgore and Kilgore College all grant the Freeport Tax Exemption, which is a permanent property tax exemption on inventory. Freeport property includes inventory that is detained in Texas for a short period of time (175 days or less) to be transported out of Texas. The exemption represents roughly 88% of the property tax rate.
A freeport exemption is a permanent property tax exemption on inventory. This exemption applies to goods, wares, ores and merchandise that will be transported outside the state of Texas within 175 days or less. Exceptions include oil, gas and petroleum products (defined as liquid and gaseous materials immediately derived from refining petroleum or natural gas) and to aircraft or repair parts used by a certified air carrier.