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<br />Community Tax Analysis Document <br /> <br />In order for the City of La Porte to attract the right type of industrial development and <br />employment opportunities that come with the establishment of a national distribution <br />center, it will be imperative that the City of La Porte determine a tax incentive that will <br />be competitive with those of the surrounding areas. While some taxing jurisdictions do <br />not offer tax exemptions, others, like Chambers County and Bay town (just across the <br />bridge), are capitalizing by offering a full exemption, and thus, reaping the rewards of <br />landing the largest of the national distribution center activity. <br /> <br />As a result of this type of capitalization, Chambers County and Bay town have realized <br />a large increase in their revenue, provided their area residents with job opportunities, <br />and established a strong market reputation as a prime location for distribution center <br />facilities. <br /> <br />The federal exemption that is provided under the Foreign-Trade Zone (FTZ) program was <br />designed to provide importers with the ability to retain as much American processing and <br />distribution as possible in order to help retain jobs in the U.S. This is done by providing <br />companies that meet FTZ criteria with the ability to waive inventory taxes on <br />merchat:ldise that enters the U.S. from foreign locations forprocessing and distribution to <br />the U.S. marketplace. Following is a list of the exemptions which are offered in <br />surrounding communities: <br /> <br />Harris County, Houston, Deer Park and Deer Park Independent School District <br />(ISD) - 0% Exemption Ho~to~ 1::,5 Q - 0 OZo <br /> <br />Harris County, the City of Houston, City of Deer Park and Deer Park ISD provide a 0% <br />exemption on applicable inventory within FTZ facilities. <br /> <br />City of Pasadena - 0% Exemption <br />p o.,~ 6-1e-0 tL 'X SQ .^"? <br />r . <br />The City of Pasadena has followed their neighbor, Deer Park, and has also offered no tax <br /> <br />exemption incentives for FTZ related projects. <br /> <br />Chambers C:ounty an. d Ba~own, Texas -100% Exe~ptj<?n Ii '..r;;' 11.. III \ <br />Go 0 0,5 e.. CR. ee- k x.. S J,J- ) 00 r t> 0 ~ 2. u...c..lL~u~ct f~ C~l-~ l a-q e~Ld. c I <br />Both of these taxing jurisdictions are currently offering FTZ facilities a 100% tax <br />exemption on all applicable inventory. This added benefit has led to a significant <br />movement/relocation of large national distribution centers to the Cedar Crossing <br />Industrial Park, including Home Depot. <br /> <br />La Porte Independent School District - 50% Exemption <br />CJ-f <br />Historically, the La Porte ISD has given a 75% exemption, but this year lowered the <br />exemption to 50%. <br /> <br />I:\PROJ\Houston Expanion App. 2006\Community Tax Analysis Document.doc <br />