Texas bars municipal income or gross-receipts business taxes, so Plano funds itself through property tax, sales tax, hotel tax, and franchise fees, leaving businesses with state franchise tax obligations and minimal city-specific tax classification.
Texas Constitution Article 8 and the Tax Code prohibit municipal income taxes, and state preemption blocks gross-receipts business taxes. Plano therefore funds operations primarily through ad valorem property tax under Tax Code Chapter 26, the local 2 percent sales tax piggybacking on the state 6.25 percent, hotel occupancy tax, and utility franchise fees. Businesses owe the state franchise tax under Tax Code Chapter 171 if revenue exceeds the no-tax-due threshold, currently around 2.47 million dollars. The city does not classify businesses for taxation purposes, only for zoning and licensing under Chapter 8.
Filing fraudulent state franchise reports or evading Plano sales tax collection triggers Texas Comptroller audits, penalties, interest, and possible criminal tax fraud charges under Texas and federal law.
Other ordinances people look up for this city. Green dot = verified primary-source excerpt.
Plano, TX
Plano's zoning and property maintenance codes do not restrict residential lawn ornaments, statuary, or religious displays at single-family homes. Political s...
Plano, TX
Plano has no specific City ordinance regulating residential inflatable holiday displays. The principal restrictions come from HOA covenants under the Texas R...
Plano, TX
Plano has no citywide ordinance restricting residential holiday lights at single-family homes. Restrictions arise principally from HOA covenants under the Te...
Plano, TX
Outdoor kitchens in Plano require separate trade permits from Building Inspections: building permit for structural elements, mechanical permit for gas lines,...
Plano, TX
Plano has no specific ordinance regulating residential offset smokers, pellet grills, or wood-fired pizza ovens at single-family homes. Multi-family balcony ...
Plano, TX
Plano adopts the 2021 International Fire Code through the Plano Code of Ordinances, enforced by Plano Fire-Rescue. IFC §308.1.4 prohibits open-flame cooking ...
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