In a landmark decision on September 12th, Port Freeport’s Commission voted to adopt a zero tax rate for the first time in its history, signaling a new era of financial self-reliance. This move means no taxes will be levied on the public, a significant milestone since the port’s establishment nearly 100 years ago.

Port Freeport was founded in 1925 when Brazoria County voters approved the creation of the Brazos River Harbor Navigation District (now Port Freeport) and authorized $1 million in bonds to collaborate with the U.S. Army Corps of Engineers on diverting the Brazos River. This pivotal decision laid the foundation for the region’s economic growth and prosperity, and today’s tax independence honors that legacy.

Reflecting on this achievement, Chairman Ravi Singhania commented, “This milestone is a testament to the hard work and vision of both current and past commissioners and employees. It all started with the bold decision by voters in 1925, and we are immensely proud to carry their legacy forward.”

In 1927, the first bonds were issued, and a tax rate of $0.35 was adopted. The taxable value of the district at the time was $29.6 million. Today, the taxable value has skyrocketed to $23.5 billion, supported by the port’s remarkable growth.

Last year, the Port Commission set the Maintenance & Operations (M&O) rate to zero, ensuring that any future taxes would require voter approval. Now, the commission has also voted to eliminate the Interest & Sinking (I&S) rate, opting to cover the fiscal year 2025 debt payments for the 2018 voter-approved bonds through port operating revenues. This marks a pivotal shift as the port becomes fully self-sustaining while managing its financial obligations.

Rob Giesecke, Vice Chairman and Finance Committee Chair, expressed gratitude to the taxpayers who have supported the port for nearly a century. “The port’s recent growth has strengthened our operating revenues, allowing us to fully sustain operations and meet debt service requirements without relying on taxes,” he said. “We are grateful for the support, but we’ll take it from here.”

Port Freeport’s Executive Director and CEO, Phyllis Saathoff, emphasized the broader significance of this achievement. “This is a proud moment for the entire community. The Freeport Harbor Channel is a key gateway for global trade that will continue to drive growth for generations to come.”

For further details on the zero tax rate, the port’s budget, and the Freeport Harbor Channel Improvement Project, visit www.portfreeport.com.

Port Freeport remains a major player in global trade, ranking 6th nationally in chemical exports, 15th in total foreign waterborne tonnage, and 26th in container traffic. According to a 2022 study by Texas A&M Transportation Institute, the Freeport Harbor Channel generates over 266,000 jobs and contributes $157.3 billion to the national economy.