Taxation

The tax rates among Allen taxing entities are some of the most competitive in the metroplex. Along with the expansion of the business sector, the tax rate for the City of Allen has decreased by 27% since the inception of the AEDC.

2008 Local Ad Valorem Taxes:

TAX RATE PER $100

TAXING UNIT	ASSESSED VALUE
Collin County	$  .240000
Allen City	$  .556000
Allen Independent School District	$1.470000
Collin County Community College District	$  .090000
TOTAL	$2.356000

Sales Tax:

TAXING UNIT	PERCENT
Municipal Sales Tax	1.00
State Sales Tax	6.25
Economic Development Sales Tax (4a)	.50
Community Development Sales Tax (4b)	.50
TOTAL	8.25

TEXAS MARGIN TAX The Texas Margin Tax applies to all entity types that offer liability protection to their owners. Basically, it is 1% tax on the lesser of: 70% of a taxable entity's total revenue or total revenue less either the cost of goods sold for manufacturers and wholesalers/retailers or total revenue less employee compensation and benefits for all other industries. For entities with less than $10 million in total gross receipts, there is an alternative EZ tax, which is a tax on .575% of total receipts. Taxable entities with gross receipts of $300,000 or less are exempt from the tax, with a phase-in of the tax rate up to $900,000 in gross receipts. No State Sales Tax! Information on the margin tax can be obtained from the Texas Comptroller's office at 1-800-252-1381 or via their web site www.window.state.tx.us.