San Benito is growing!

San Benito's access and partial ownership of the Free Trade International Bridge, growing tourist industry, and industrial park are just some of the opportunities driving economic growth.

With the opening of the medical school nearby and miles of waterfront land available for development, San Benito will continue achieving progress. 

Texan residents and businesses are able to enjoy one of the lowest tax burdens in the United States, as we do not pay personal or corporate income taxes.  Additionally, Texas does not impose state taxes on:

  • property used for pollution control
  • goods in transit
  • machinery and equipment utilized in manufacturing

(www.texaswideopenforbusiness.com  12/2016)
 

San Benito has experienced a large increase in traffic counts from 2013 to 2015.  Daily traffic along US-83 has increased over 6.5% from 59,134 to 63,062, while daily traffic along US Business 77 has increase by 15% from 16,545 to 19,048.  (www.txdot.gov)

FREEPORT TAX EXEMPTION

Effective January 2018, companies may apply for an exemption of its freeport tax on warehouse inventory.  This exemption is anticipated to save companies a substantial amount of money annually.  Based on 2016 inventory levels, San Benito and Los Indios based companies would be eligible for savings of up to $500,000. (www.valleybusinessreport.com  12/2016) 

 

TAX PROPOSITIONS

The following tax propositions passed in November 2016 will allow for renovation and expansion of attractions and businesses in Cameron County.

Proposition 1

Authorizing Cameron County, Texas to provide for the renovation, planning, acquisitions, development, construction, equipment, and expansion of the Sea and Space Amphitheater and any related infrastructure, and to impose a hotel occupancy tax at the rate of two percent of the price paid for a room in a hotel located in Cameron County, Texas, and to impose a short term motor vehicle rental tax at a rate of five percent on the gross rental receipts from the rental of motor vehicles in Cameron County, Texas, and to impose an admissions tax at a rate not to exceed ten percent on the price each ticket sold as admission to an event held at the Sea and Space Amphitheater for the purpose of financing the venue project. If approved, the maximum hotel occupancy tax rate imposed from all sources in Cameron County, Texas, would be 17% of the price paid for a room in a hotel.”

The Project:  The Sea and Air Amphitheater is designed to accommodate visitors who gather to witness rocket launches expected just across the ship channel at Boca Chica launch site or enjoy concerts featuring local musical or national entertainment acts.  The cost is expected to be about $1.5 million and will be located at Dolphin Cove on the southernmost tip of South Padres Island.  (www.valleymorningstar.com  11/2016)

Proposition 2

“Authorizing Cameron County, Texas to provide for the renovation, planning, acquisition, development, construction, equipment, and expansion of the South Texas Eco-Tourism Center and any related infrastructure, and to impose a hotel occupancy tax at the rate of two percent of the price paid for a room in a hotel located in Cameron County, Texas, and to impose a short term motor vehicle rental tax at a rate of five percent on the gross rental receipts from the rental of motor vehicles in Cameron County, Texas, and to impose an admissions tax at a rate not to exceed ten percent on the price each ticket sold as admission to an event held at the Sea and Space Amphitheater for the purpose of financing the venue project. If approved, the maximum hotel occupancy tax rate imposed from all sources in Cameron County, Texas, would be 17% of the price paid for a room in a hotel.”

The Project: The ecological nature center is slated to be located on 23 acres provided by the town of Laguna Vista and located just south of Highway 100 between the Laguna Madre Bay and the Bahia Grande wetlands.  This area is unique and home to animals such as the ocelot, plants, and marine life not found anywhere else.  The center would house exhibits, detailing the natural beauty of the region, have outlooks, and information about what to do and see in the coastal area.  The center will intersect rural trails created throughout the Bahia Grande.  The cost of this project is expected to be about $10 million.  (www.valleymorningstar.com  11/2016)

 

FOREIGN TRADE ZONE NO. 62

Foreign Trade Zone No. 62 consistently ranks in the top three U.S. FTZs for exports.
Foreign Trade Zone No. 62 is located in Cameron County, Texas, with sites at the Port of Brownsville Turning Basin, the Brownsville-South Padre International Airport, the Harlingen Industrial Park and the Airpark at the Valley International Airport in Harlingen. The zone grantee and operator is the Brownsville Navigation District, a political subdivision of the State of Texas. FTZ No. 62 is one of the largest FTZ’s in the U.S. and the largest in Texas. Merchandise from every continent has passed through FTZ No. 62 and over 2,300 acres are available for usage.

The Port of Brownsville is an inland deep water port with access to the Gulf of Mexico by way of 17 mile ship channel. The Port offers full utilities service and excellent ship, barge, truck and rail transportation. The Brownsville South Padre Island Airport site includes roughly 300 acres with immediate access to taxiways. The Harlingen Airpark which is serviced by three major airlines.

All the peripheral services needed to support the zone are present in the form of banks, customs brokers, trucking services, freight forwarders, etc. Warehouse space is available from private owners or a company may lease land and construct its own facilities.  The Cities of Brownsville and Harlingen have a temperate, semitropical climate and an abundant labor force.

Located on the Texas-Mexico border, FTZ No. 62 is ideally situated to take advantage of “twin plant” operations.

Goods That May Be Placed In An FTZ
Any domestic goods or goods originating abroad that are not prohibited by law, whether dutiable or not, may be placed in an FTZ.

Merchandise that may not be lawfully imported cannot be placed in an FTZ.

On the other hand, goods that may not “enter the U.S. Customs territory” may be placed in an FTZ because it is deemed to be outside U.S. Customs territory. An example of such merchandise might be textiles for which the quota has closed.

The Foreign Trade Zones Board itself may exclude from the FTZ any merchandise that is deemed detrimental to the public interest, health and safety.  The board also insures that FTZs are not used to impair other U.S. trade laws.
(www.portofbrownsville.com  1/2017)