DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Adoption of the City of San Antonio Tax Abatement Guidelines (Tax Abatement Guidelines) effective from January 1, 2017 through December 31, 2018.
SUMMARY:
Chapter 312 of the Texas Tax Code provides local governments the authority to enter into tax abatement agreements to promote the attraction of new companies and the retention and expansion of existing businesses to create jobs and investment. State law requires the adoption of the Tax Abatement Guidelines by City Council every two years. Staff is requesting an Ordinance adopting the January 1, 2017 through December 31, 2018 Tax Abatement Guidelines.
BACKGROUND INFORMATION:
Since 1989, Chapter 312 of the Texas Tax Code has given municipalities the authority to offer tax abatements. City Council approved the current Tax Abatement Guidelines on December 11, 2014, which are effective from January 1, 2015 through December 31, 2016. State law requires the adoption of new Tax Abatement Guidelines every two years.
Using the tax abatement program, the City can offer a company up to a 100% tax abatement on real and personal property improvements for up to 10 years based on a company reaching contractual milestones such as job creation and retention, wage thresholds, and capital investment at a project site.
The proposed Tax Abatement Guidelines sets forth the eligibility criteria for projects seeking a tax abatement to include investment, jobs, and wages, targeted industries and targeted locations. City Council adopted targeted investment areas (ICRIP), which created targeted areas for economic development financial incentives, including tax abatements. The proposed Tax Abatement Guidelines retain the focus on investment and job retention/creation in the ICRIP. In addition, the Guidelines reference the SA Tomorrow Comprehensive Plan which highlights Regional Centers and the potential regional c...
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