O-2010-3245 adopting new Guidelines and Criteria Governing Tax Abatement Agreements

Browse Search

(e) Ineligible Property. The following types of property shall be fully taxable and ineligible for abatement: land; inventories; supplies; tools; furnishings, and other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred maintenance investments; property to be rented or leased (except as provided in the Section 66-142(f), "Owned/Leased Facilities"); property which has an economic life of less than 15 years; property owned or used by the State of Texas or its political subdivisions or by any organization owned, operated or directed by a political subdivision of the State of Texas, or any property exempted by local, state or federal law. When such exempted property includes manufacturing machinery and equipment listed in the Investment Budget (as required in Section 3, "Application"), then the value of such property may not be included toward the achievement of the investment or valuation thresholds set out in the Tax Abatement Agreement. (f) Owned/Leased Facilities. If a leased facility is granted abatement the agreement shall be executed by both the lessor and the lessee. (g) Value and Term of Abatement. A tax abatement shall be granted in accordance with the terms of a Tax Abatement Agreement, as follows: 1. Either with the January 1st valuation date immediately following the date of execution of the agreement or a subsequent January 1st valuation date not more than three years after execution of a tax abatement agreement, but not beyond the completion of construction. Projects are eligible for abatement of new value. Under no circumstances will any facility be granted the benefit of a tax abatement for longer than five (5) years. Value subject to abatement must remain greater than or equal to the contractually -defined "Minimum Value Requirement." To determine the amount of each year's exemption, the adjusted cap shall be multiplied by a sliding scale as follows: Type of Facility Regional Distribution/Svc (rail -served facility) Manufacturing/ Other Basic Industry Retail/Office/Regional Entertainment (0 — 50k s.f.) Retail/Office/Regional Entertainment (50k — 100k s.f.) Retail/Office/Regional Entertainment (100k — 200k s.£) Retail/Office/Regional Entertainment (200k s.f. or more) Year 1 Year 2 Year 3 Year 4 Year 5 Abatement Abatement Abatement Abatement Abatement 20% 15% 5% 5% 5% 20% 15% 5% 5% 5% 20% 15% 5% 5% 5% 50% 25% 10% 10% 5% 50% 50% 25% 25% 25% 50% 50% 50% 50% 50% 2. No tax abatement shall be given in any year in which the facility fails to meet the contractually defined "Minimum Value Requirement." WON