Economic growth is one of the most important indicators of Red Oak's healthy economy. One of the biggest impacts of long-term growth is that it has a positive impact on income and the level of employment, which increases the standard of living.
Below is a current list of the taxes collected by the City of Red Oak:
Taxes & Cost of Doing Business (City, County, & State)
Property Tax Rates Ad Valorem Tax Rates (Per $100 Assessed Value) City of Red Oak $0.697464 Red Oak ISD $1.325600 Ellis County $0.339338 Total Property Tax $2.362402
Property Tax Exemptions Residence homestead exemptions are listed below. Homestead – 10% Over 65 - $20,000 Over 65 – Frozen Disabled Person – 3,000
Sales Tax Rates State Sales Tax 6.25% City Sales Tax 1.00% Industrial Development (A) 0.50% (1/2 Cent) Economic Development (B) 0.50% (1/2 Cent) Total Sales Tax 8.25%
Income Tax The State of Texas does not impose a personal or corporate income tax.
Corporate Franchise Tax A corporate franchise tax is levied in Texas in place of a corporate income tax. The tax is levied on businesses organized in the corporate form in Texas. Corporations are taxed at the rate of the greater of $2.50 per $1,000 of net taxable capital or 4.5% of net taxable earned surplus.
Hotel / Motel Occupancy Tax The State of Texas imposes a hotel/motel occupancy tax of 6% with individual cities having the option to increase the tax rate up to 7%. The total Hotel / Motel Occupancy Tax Rate in the City of Red Oak is 13%.