November 17, 2016

FTZ Board Update: Guidance document on addressing state/local tax impacts

There can be state/local taxes for which collections can be affected through FTZ Board action to designate FTZ sites (including sites of subzones). Examples include taxes on business inventories in states such as Texas, Louisiana and Kentucky (for which collections can be affected by Section 81o(e) of the FTZ Act) and real property taxes in Arizona (due to a provision of state law).

The FTZ Board’s formats for applications to designate FTZ sites require applicants to address potential state/local tax impacts and to provide evidence of affected parties’ concurrence/non-objection regarding the application in question. In response to requests from applicants, the FTZ Board staff has developed the attached document providing additional guidance on addressing potential state/local tax impacts of FTZ proposals. This document will also be available on the FTZ Board’s website.

If you have any questions regarding the attached document, please do not hesitate to contact the FTZ Board staff’s “regional representative” who covers your state. Contact information for the regional representatives is at:

Andrew McGilvray
Executive Secretary and Staff Director
U.S. Foreign-Trade Zones Board
(202) 482-2862