R-1989-19 - Laserfiche WebLink

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I .~. ... I e e 0,1 """'\ -- Annotation of the Guidelines and Criteria For the Creation of Reinvestment Zones in Harris County Section la.The abatement policy is defined for .'economic development purposes." No provision is made for redevelopment, which io being handled separately. Abatement applies to real proper~7 only and therefore excludee p~r~onal property such as office fi::tureo and inventories. The net effect of thio limitation will be to assure that local governments receive addi tional revenue from personal property associated. with the tax. Section lb. All "affected jurisdictions" will receive notice o~ public hearing (Section 3c) and abatement will not be granted if it has a negative impact on an affed~ed ju:isdiction (Section 4a). l'7ater districts and other special jurisdiction~ arc not "affected jurisdictions." "' ) 'Section ld. The "base year value" applies to the vo.lue before irnprovement~, which will be full~ taxable (Section 2i). It has not. been determined at this time whether the base year value will be fixed or allowed to fluctuate based on the cho.nges in market conditions and value of the base assets. The base year value includes properties on the tax roll January 1 preceding the ~greernent as well as any properties added until the ag:eemcnt is execu~ed. In ether words, . improvements added after J4nuary I bu~ before the execution of the agreement will not be eliyible for abatement. Section Ie. The definition "deferred maintenance" appliao to certain ineligible maintenance investments necessary for continued operations (Section 2e). Section If. A "diotribution center facility" is eligible for abatement (Section 2a) p~ovided that the majority of service is provided to points at least 100 miles from Harris County. The purpose is to avoid abating property located in' Harris County that primarily serves Harris County markets. Such businesses locate here to tap our market and incentive is unnecessary. It is doubtful whether abatement would provide any addition4l employment. The definition provides tho.t the facility may also "service" owned goods or a~sets. In other words, a regional or nationa~, service or repair facility is eligible. .;. " Section. 19. Eligibility :for iObCltement due to "expansion" -1 (Section 2c) requires that production capacity be increased. Section lie A "manufacturing facility" eligible for abatement (Section 20.) need :'lot meet a requirement with respect to where