Killeen Sales and Use Tax

The Killeen Rate

Sales in Killeen carry 8.25 percent tax: 6.25 percent for the state, 0.5 percent for Bell County and 1.5 percent for the city. BOMCAS handles sales tax for Killeen businesses remotely.

The Texas sales and use tax page lists permits and taxable services statewide, and this page covers Killeen's dealers, shops and hotels.

Car Dealers

Motor vehicle sales are not subject to sales tax but to the motor vehicle sales tax of 6.25 percent, collected by the dealer and paid to the county tax assessor-collector when the title is transferred. Soldiers bringing vehicles registered in other states to Texas pay a new resident tax when they register them in Texas. Repairs and parts sold by dealers are subject to ordinary sales tax.

Pawn Shops and Used Goods

Pawn shops collect sales tax on the sale of goods. Interest and fees on pawn loans are not subject to sales tax. Used items purchased for resale can be bought without tax.

Selling on Post

Vendors who sell at events or on contracts on Fort Hood should check whether their sales are made to the federal government, which is exempt, or to soldiers personally, which are taxable. Contractors improving federal property buy materials with tax.

Restaurants and Bars

Restaurants collect tax on prepared food. Bars collect mixed beverage sales tax of 8.25 percent on drinks and pay 6.7 percent gross receipts tax. Mandatory service charges are taxable unless they meet the rules for gratuities paid to staff.

Tattoo Studios and Personal Services

Tattooing and body piercing are not on the list of taxable services in Texas, but sales of aftercare products and merchandise are taxable, and the studio pays tax when it buys ink, needles and other supplies used in the work. Barber and salon services are not taxable, while products sold to customers are.

Hotels and Short-Term Rentals

Lodging in Killeen carries 15 percent tax: 6 percent for the state, 7 percent for the city and 2 percent for Bell County, which applies to rooms in the county. Families visiting for graduations and ceremonies often stay in short-term rentals, whose hosts must file the city's hotel tax monthly.

Moving Companies

Transporting household goods is not a taxable service in Texas, but boxes, tape and other packing materials sold to customers are taxable. Moves billed to the government are federal purchases, while extra items soldiers buy for themselves are taxed normally. Movers pay tax on the supplies and trucks they use.

Gun Shops and Sporting Goods

Firearms, ammunition and outdoor gear are taxable, and gunsmithing is taxable as repair of tangible personal property. Shops should check how separately stated fees, such as transfer fees for guns bought elsewhere, are treated before setting up their registers.

Auto Repair Shops

Labour to repair or maintain cars and trucks is not taxable in Texas, but parts are. On a separated invoice the shop collects tax on the parts; on a single lump-sum price it collects nothing from the customer and pays tax on the parts when it buys them. Accessories sold to customers are taxable. Shops near the gate that offer military discounts figure the tax on the discounted price.

Parking and Vehicle Storage

Paid parking and vehicle storage are taxable services in Texas, which matters to lots and storage yards where soldiers leave cars during deployments. Impound fees are taxable too.

Our Work

Permits and returns.
Vehicle tax questions.
Pawn and resale rules.
Federal sales and exemptions.
Hotel and rental tax.
Audits.