Tax rates are set by the local taxing jurisdictions. Each local taxing jurisdiction calculates the taxes due by applying its tax rate to the taxable value of all taxable property within its boundaries. The Texas sales tax is a consumption-based tax, generally collected by the seller from the purchaser at the time a taxable item is sold at retail in Texas and remitted by the seller to the state. If the sale tax applies, the use tax does not apply. The Comptroller administers the sales and use tax.
Services generally are exempt unless specifically designated as taxable.
The state sales and use tax is currently imposed at the rate of 6.25 percent of the sales price of each taxable item sold. Cities, counties and certain special districts and authorities are also permitted to impose sales and use taxes at varying rates. Tax Abatement The Town of Pecos City and Reeves County uses tax abatement to attract industry to the city and county. The abatement offered by the city and county is limited to new and existing businesses that bring added wealth and employment to the area. A reinvestment zone is a specific parcel of land designated by the Town of Pecos City in the city limits or extra territorial jurisdiction of the city.