Property Tax Economic Development Programs

Tax Abatement Act

Chapter 312, Tax Code

A tax abatement is an agreement between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years. School districts may not enter into abatement agreements. Each taxing unit that wants to consider tax abatement proposals must adopt guidelines and criteria for the creation of a reinvestment zone and must hold a public hearing. After these steps are complete, the taxing unit may, by official action, designate a zone.

Seven days’ written notice of the hearing must be given to the presiding officer of each of the other taxing units that has taxing jurisdiction over real property within the zone. Notice of the hearing must also be published at least seven days before the hear-ing in a newspaper of general circulation in the city. At the public hearing on the reinvestment zone, the governing body must find that the improvements sought are feasible and would benefit the zone after the expiration of the agreement, and the zone meets one of the applicable criteria for reinvestment zones.

After the designation of the reinvestment zone, the governing body of a taxing unit may enter into a tax abatement agreement under this chapter if it finds that the terms of the agreement and the property subject to the agreement meet the applicable guidelines and criteria adopted by the governing body under this section.

More Resources:

• Biennial Reports for Reinvestment Zone for Tax Abatement Registry, Tax Abatement Agreement Registry, Tax Increment Financing Zone Registry and Refund for Economic Development
• Property Tax Abatement Registry & Refund for Economic Development Forms