Decision on Freeport tax could come soon

HARLINGEN — The city’s push to lift a Cameron County tax continues.

Today, city commissioners will reconsider approving a resolution supporting Cameron County’s adoption of an exemption to its freeport tax on warehoused inventory.

Two weeks ago, commissioners delayed action to search for ways to help the county offset the tax’s $1.6 million in annual revenue.

And the search to offset lost revenues continues, City Manager Dan Serna said yesterday.

“We’ve been talking to them but we haven’t got to the point where there’s a definitive path,” Serna said.

In Harlingen, officials argue the tax drives away warehousing and manufacturing companies.

“I think it puts us at a disadvantage not to have a freeport tax exemption,” Mayor Chris Boswell said.

Boswell cited a study by the University of Texas-Rio Grande Valley that found the tax puts Cameron County “at a competitive disadvantage when it comes to attracting businesses with millions of dollars in inventory.”

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