R-1989-19 - Laserfiche WebLink

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l ) ) I '( .. , Annotation, page 3- . ./ e r.estricted to new improvements that must be specified in the a~eement . Section 2c. Provides that new facilities as well as those. exi.sting facilities which are being expanded or modernized are eligible. This "level playing field" gives equal treo.tment to empl.oyers who have. already made. investments in Harris County since their new investments could be abuted. -- Section 2d. Describes the types of investments that are eligible. Included' are structures, fi~ed machinery and si tei:nprovelilents plus office space and other improvements necessary for the operation and administration. Assets unrelated to the project arc not eligible. . Section 2e. Provides an ey.tensive list of properties that arc ineligible fo~ abatements: land, in~entories (particulurly manufacturing inventory, \-/hich is a.' significant sourc~ ot revenues for local governments), supplies, tools, furr.ishings, personal property, vehicles, vessels, aircraft, housing, hotel accommodations. Housing is excluded because it creates unworkable problem!; for competitors in the housing industry. The ::lame problem applies with the hotel industry, which locates facilities because of the market, not abatement. Deferred maintenance is ineligible because it is a normal part of operating a plant. Improvements. for the generation of electrical capacity are e]:cluded from abatement because these types of invcst.-nents enter into direct competition with regulated utilities which do not nave the benefit of abatement. Improvements to store, produce or distribute natur~l gas and fluids that are not integral to the operation of the facility are excluded because existing pipeline::; and other transmission systems are not eligible. Properties which have a productive life of less that 15 years are excluded to assure governments will get ta]: revenue for a period e:.:ceeding the time frame oi the abatement. ., Section 2f. Owned/leased Facilities. Al though it would be advantageous to exclude all leaseu property, financing arrangements ortcn force an operator to use a leased facility. In this case abatement will be allowed only if a binding agreement is e~ecuted by the county with the lcssor and the lessee. iloth parties are subject to recapture. Section 2g. Value anc. Term of Abatement. Once the agreement io executed, taxes will be abated effective January 1 following for up to t~o years during construction and a ma::imum of five years thcreafter. '- B}' abating the construction period, we do not put the goverr.mcnt in the position where they collect revenue during construction only to have it cut off o.fter construction is completed. Not~ that if construction e::ceeds two years for purposes of abatecent,