McKinney's 8.25 Percent
McKinney collects 8.25 percent sales tax: 6.25 percent for Texas, 1 percent for the city and half a cent each for the McKinney Economic Development Corporation and the McKinney Community Development Corporation. McKinney does not belong to DART. The two corporations fund business incentives and community projects. BOMCAS handles sales tax for McKinney businesses remotely.
Our Texas sales and use tax page covers permits and taxable services generally, so here we look at McKinney's aircraft, venues, taprooms and farms.
Aircraft
Aircraft sold in Texas are taxable unless an exemption applies, and an aircraft bought outside Texas and brought here for use is subject to Texas use tax, with credit for sales tax properly paid to another state. The Comptroller compares aircraft registered or based at Texas airports with tax records, so owners of planes based at McKinney National should keep proof of tax paid or of the exemption claimed. Parking and hangar rentals are treated differently: parking is taxable, while hangar space is generally a lease of real property.
Taprooms and Breweries
Breweries selling beer in their taproom have separate permit and tax obligations from the excise tax on production. Food sold in the taproom, merchandise and glassware are taxable sales, and tours that include tasting may be taxable admissions. Each type of sale should have its own code in the point-of-sale system.
Event Venues
Renting a venue for a wedding or party is generally a rental of real property, which is not taxable. Catering, bar service, decorations, linens and equipment rented with the venue are taxable. When everything is billed together in one package, the whole price may be taxable, so venues usually separate the room charge from the rest.
Shops on the Square
Retailers on and around the square collect tax on most goods, and antique dealers on consignment sales. Sellers at markets and festivals in McKinney need a permit, and those who come from elsewhere collect at the McKinney rate for sales made at the event.
Farms and Ranches
Farmers and ranchers can buy feed, seed, fertiliser, machinery and certain other items used in producing agricultural products for sale without sales tax, using an agricultural and timber registration number from the Comptroller. The number must be renewed and is limited to qualifying use.
Software and Data Services
Corporate offices in the Highway 121 corridor buy software, cloud services and data processing. In Texas, data processing services and many information services are taxable, but 20 percent of the charge is exempt, so tax is due on 80 percent. Remote vendors often charge the wrong rate or none at all, leaving the buyer to accrue use tax.
Farmers Markets
Vendors at McKinney's farmers market sell produce, eggs and other unprepared food that is exempt, but prepared food, crafts and plants are generally taxable, and vendors need permits for those sales.
Construction
Builders working on new homes under lump-sum contracts pay tax on materials rather than charging it. Commercial remodelling and repair are taxable services, and contractors must collect tax from the owner.
Hotel Tax
McKinney hotel guests pay 7 percent city hotel tax and 6 percent state hotel tax. Short-term rental hosts owe both unless the platform collects them, and should check city registration rules.
Our Help
- Permits and filing.
- Aircraft tax reviews.
- Venue and catering invoicing.
- Agricultural registrations.
- Audits and refunds.
McKinney Sales and Use Tax Questions
Do I owe Texas tax on a plane bought in another state?
Usually Texas use tax is due, with credit for tax properly paid elsewhere.
Is renting a wedding venue taxable?
The room itself generally is not, but catering, bar and rented equipment are.
How do farmers buy supplies tax free?
With a Comptroller agricultural and timber registration number.
Is McKinney part of DART?
No. Its local tax goes to the city and its two development corporations.
Talk to BOMCAS About Sales and Use Tax in McKinney
Sales tax filings must agree with the ledger and the business return. Event staff are paid through payroll, aircraft assessments are settled under back taxes, a new venue or plane is a planning decision, owners file personal returns and imports raise cross-border questions. Statewide detail on business tax, personal returns, bookkeeping, payroll, tax planning, back taxes and cross-border matters is on our Texas pages, linked together from the Texas overview.
Running a shop on the square, building in east McKinney or weighing an offer for family land? Tell BOMCAS what is going on and we will come back with what we would look at first and what a quote needs. You can use the contact page or the form below, phone 780-667-5250, or email info@bomcas.ca. The McKinney overview links every McKinney service. This is general information, not advice for your particular case.