Effective January 1st, the following three combined tax areas are recognized by the state of Texas:
Forney/Kaufman County Development District
Killeen/Salado Public Library District
Niederwald/Caldwell Hays Emergency Services District No. 1-A
This brings the total number of combined tax areas in the state of Texas up to 40. Combined tax areas are “unique areas where a portion of a city overlaps another taxing jurisdiction, resulting in a total local tax rate that would exceed two percent” (http://comptroller.texas.gov/taxinfo/local/combined.html). In these areas a combined area local code is used in place of the regular city code for reporting. The combined area local code indicates a tax rate of 2% or less, insuring that the Texas maximum local tax of 2% is not exceeded in any location.
These combined tax areas are now completely supported by Onesource Indirect Tax Determination. Customers can learn more in the February content release letter.