O-2007-2990 - Laserfiche WebLink

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B. Definitions When used herein, the listed words have the following meanings: 1. "City" means the City of La Porte, Texas, and does not include any other entities that may levy taxes on the Complex including, but not limited to, cities, utility districts and/or school districts. 2. "Complex" means the site described in Exhibit A attached hereto and all improvements thereon. 3. "FTZ Inventory" means any inventory held in the Complex that would qualify for the 19 V.S.C. ~81o(e) federal exemption for certain foreign trade zone inventory that would otherwise be taxable by the City Taxing Jurisdictions pursuant to Chapter 11, TEX. PROPERTY TAX CODE. 4. "Pavrnent" means the amount equal to the property taxes on FTZ Inventory that a User would owe the City Taxing Jurisdiction in accordance with the provisions of Chapter 31, TEX. PROPERTY TAX CODE, if the 19 U.S.C.~810(e) exemptions is not applied. C. Obligations 1. Company agrees to the following with respect to FTZ Inventory owned by Company: a) Company waives the federal exemption provided in 19 V.S.C. 98lo(e) with respect to ad valorem taxes payable to the City for FTZ Inventory owned by Company and located at the Complex, to the extent of 75% of the City's ad valorem tax rate, thereby claiming the Federal exemption at the rate of 25%, and will actually pay to the City 75% of the otherwise total ad valorem tax liability, on FTZ Inventory owned by the company. Company further agrees not to not raise the aforementioned exemption as a basis for protesting the appraisal of any FTZ Inventory owned by Company. b) On January 1st and September 1st of each year (the valuation date(s) for taxation purposes pursuant to TEX. TAX CODE SECTIONS 23.01 and 23.12(f)), Company will use reasonable efforts to identify and designate in a clearly identifiable manner any FTZ Inventory owned by it and held in an activated foreign trade zone space at the Complex. c) If the Texas Legislature alters the valuation date(s) for taxation purposes in the future, the inventory restriction outlined above will apply only to the new valuation date(s) as established under Texas law. d) Company will do the following: I) Render information related to FTZ Inventory owned by it and located at the Complex as required by the TEXAS PROPERTY TAX CODE to Harris County Appraisal District ("HCAD"), without regard to and without identifying FTZ Inventory as subject to or eligible for the federal exemption in 19 U.S.C. ~810(e), and provide a copy to the City. 2) On or before December 1st of each year, during the term of this Agreement (and/or August I st in cases where Company has elected a September I st valuation date for taxation purposes pursuant to TEX. TAX CODE SECTION 23.12(f)), Company agrees to