How the Laredo Rate Adds Up
Shoppers in Laredo pay 8.25 percent. The state takes 6.25 percent, the City of Laredo 1 percent, Webb County half a cent, the city's transit system a quarter-cent and the sports venue tax another quarter-cent. Rio Bravo, El Cenizo and unincorporated parts of Webb County have different totals. BOMCAS registers Laredo sellers and prepares their returns remotely.
Permits and general taxability are set out on the Texas sales and use tax page, while this page deals with Laredo's rate and export sales.
Exports at the Register
Much of Laredo's retail trade goes south. A sale to a Mexican resident is still taxable unless the goods actually leave the United States and the store can prove it. When the store delivers across the border itself, its shipping and customs papers are the proof. When the shopper carries the goods out, the usual proof is an export certification issued through the Comptroller's system by a licensed Texas customs broker. Stores that let staff skip the tax without that paperwork can face assessments in an audit, along with interest and penalties.
Customs Brokers Who Certify Exports
Laredo has many customs brokers licensed by the Comptroller to issue export certifications. They must inspect the goods, keep records, issue certifications only through the approved system and charge no more than the permitted fee. We help brokerage offices keep their records and reports in order.
Trucks, Parts and Repairs
Trucks and trailers registered in Texas pay motor vehicle sales tax rather than ordinary sales tax. Some interstate carriers can buy qualifying vehicles under an exemption tied to interstate use. Labour to repair a truck or trailer is not taxable in Texas, but the parts are: a shop that itemises parts and labour charges tax on the parts, while a shop that bills one lump sum pays tax on the parts when it buys them. An interstate carrier's operating authority does not change this, apart from a narrow use tax exemption for certain carriers on out-of-state parts fitted to self-propelled vehicles in Texas.
Warehouses and Goods for Export
Goods stored in Laredo and shipped to buyers in Mexico are exempt as exports when proof of export is kept. Packaging, pallets, forklifts and supplies the warehouse uses itself are taxable. Storage and handling services for goods in transit are generally not subject to sales tax, but some related services can be.
Restaurants and Bars
Restaurants and bars collect tax on meals and soft drinks. Those with mixed beverage permits collect mixed beverage sales tax on drinks and pay the 6.7 percent gross receipts tax. Payments in pesos are taxed on their dollar value at the time of sale.
Hotels
Hotel stays of less than 30 days in Laredo carry 14 percent tax: 6 percent state, 7 percent city and 1 percent Webb County. Many visitors are business travellers in the freight trade or families from Mexico. Short-term rental hosts must collect all three taxes unless a platform collects them.
Peso Pricing and Currency Swings
Some Laredo stores post prices in pesos or accept them at the till. Sales tax is always reported in dollars, on the dollar value of the sale when it is made, so the rate used at the register should be recorded daily. When the peso weakens, cross-border traffic and taxable sales can fall within weeks, which can move a store from monthly to quarterly filing, or the reverse, at the Comptroller's review.
Our Sales Tax Work
- Permits and outlet locations.
- Export exemption procedures and audits.
- Truck, parts and repair taxability.
- Monthly or quarterly filings.
- Hotel and mixed beverage tax returns.
Laredo Sales and Use Tax Questions
Is a sale to a shopper from Nuevo Laredo exempt?
Only if the goods are exported and the store keeps proof, such as a licensed customs broker's export certification.
How is Laredo's 8.25 percent split?
6.25 percent state, 1 percent city, 0.5 percent county, 0.25 percent transit and 0.25 percent sports venue.
What is the hotel tax in Laredo?
14 percent: 6 percent state, 7 percent city and 1 percent county.
Is truck repair labour taxable in Texas?
No. Motor vehicle repair labour is not taxable, but parts are.
Talk to BOMCAS About Sales and Use Tax in Laredo
Export sales need to match the books and the business return. Counter staff are paid through payroll, past audit exposure can be handled under late filing, new stores and warehouses are planning questions, owners report profits on personal returns, and Mexican buyers bring in cross-border rules. Beyond the port, the statewide rules for business tax returns, personal tax returns, bookkeeping, payroll, tax planning, back taxes and cross-border matters are on our Texas pages, starting from the Texas overview.
Send BOMCAS a few lines about your Laredo fleet, brokerage, store or family and we will reply with a first step and a list of records for a quote. Write through the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Our other Laredo services are listed on the Laredo overview. The information here is general and not advice for your business or family.