Why do I have to pay taxes to store my branding materials in the Texas facility?

Note

This does not constitute professional tax advice. We strongly advise consulting a tax specialist to find out your specific obligations.

Tangible personal property (including inventory) stored for a certain period of time in Texas is subject to Business Personal Property Tax (BPP tax). You, as the owner of goods, will have to assess and report it to the state on a yearly basis and pay the applicable tax.

The rate of the BPP tax depends on the location of the inventory. In this case, you should use the BPP tax rate and the rules of the city of Coppell, Texas, and Dallas Appraisal District, where our warehouse is located.

The following exemptions apply to the BPP tax:

The tangible personal property stored won’t be charged tax if it has a taxable value of less than USD 2500 for the tax period
Tax won’t be charged on items that have been stocked in the Texas warehouse for under 175 days

If these exemptions don’t apply to you, you’ll have to register as a taxpayer in Texas and file a yearly BPP report. The submission deadline is typically April 15 of each calendar year. However, check with the local tax authorities or your tax advisor for the deadline that may apply to you.

To access a yearly report of your BPP tax, head over to your Printful Dashboard → Warehouse → Inventory → click Export BPP tax report. This will open a pop-up window where you can select the year and Download.

BPP tax report export button highlighted in the Inventory section.