Property tax abatements are authorized to be issued within the jurisdiction and authority of the City Council only for the purposes of preventing the loss of payroll or taxable property value and creating or increasing the gross payrolls or property values on a permanent basis within the jurisdiction of the city.
(A) Eligible facilities. Upon application, eligible facilities shall be considered for tax abatement, as hereinafter provided.
(B) Creation of new value. Abatement may only be granted for the additional value of eligible property improvements made subsequent to and specified in an abatement agreement between the city and the property owner or lessee, subject to such limitations as the city may require.
(C) New and existing facilities. Abatement may be granted for new facilities and improvements to existing facilities for purposes of modernization or expansion.
(D) Eligible property. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements and related fixed improvements necessary to the operation and administration of the facility.
(E) Ineligible property. The following types of property shall be fully taxable and ineligible for tax abatement: land; supplies; tools; furnishings, and other forms of moveable personal property; housing; deferred maintenance; property to be rented or leased, except as provided in division (F) below; property which has a productive life of less than ten years.
(F) Owned/leased facilities. If a leased facility is granted abatement, the agreement shall be executed with the lessor and the lessee.
(G) Economic qualification. In order to be eligible for designation as a reinvestment zone and to be considered for a tax abatement, the planned improvement must increase the appraised ad valorem tax value of at least $250,000 based upon the County Appraisal District’s assessment of the eligible property; or the owner must establish and maintain a minimum annual payroll of $200,000 or a minimum of 15 new full-time equivalent employees as a result of such improvements.
(2012 Code, § 80-38) (Ord. 071602, passed - -2007)