DEPARTMENT: Economic Development
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Consideration of Adoption of Tax Abatement Guidelines (Tax Abatement Guidelines) effective from January 1, 2021 through December 31, 2022.
SUMMARY:
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. The current Tax Abatement Guidelines were approved by Council on December 13, 2018, and will expire, if not renewed, on December 31, 2020.
Staff requests the City Council consider re-adopting the existing Tax Abatement Guidelines to continue using this economic development incentive time and engage in a comprehensive process to revise and update the Tax Abatement Guidelines in the first part of 2021. The 2021-2022 proposed guidelines are an extension of the current guidelines, which includes a targeted geography, increased transparency in project eligibility, opportunities for corporate partnerships in support of SA Tomorrow policy goals, and the Upskill Project category.
BACKGROUND INFORMATION:
Chapter 312 of the Texas Tax Code authorizes local governments to abate up to 100% of ad valorem property taxes on the value of new property improvements for up to 10 years, including real property, and tangible personal property. Chapter 312 also requires the reauthorization of tax abatement guidelines every two years.
Traditionally, the Economic Development Department does extensive outreach with economic development partners and receives feedback regarding community and business priorities in order to gauge how best to design and implement the tax abatements. The community is informed about the process through SA Speak Up, community meetings, and through online mediums. Out...
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