(A) Tax Abatements are authorized, subject to approval of the City Council and execution of a lawful tax abatement agreement, for properties located within a Reinvestment Zone designated by the City Council or an Enterprise Zone established pursuant to the Texas Enterprise Zone Act.
(B) Authorized facilities. A tax abatement may be granted for new facilities, lease facilities and for expansion or modernization of existing facilities. The economic life of a facility or improvements must exceed the life of the abatement agreement.
(C) Eligible property. Tax abatement may be granted for improvements to real or lease property, and personal property to the extent allowed by state law.
(D) Value of abatement. Authorized facilities may be granted abatement on all or a portion of the increased taxable value of eligible property over the base year for a period not to exceed ten years. This abatement, if granted as to real property, is not with regard to the entire value of the property, but only as to the extent that the value of the real property exceeds the value for the year in which the abatement is granted (Base Year). Taxes on tangible personal property may be abated to the extent of additions, but cannot be abated as to personal property located on the real property at any time before the period covered by the tax abatement agreement, and cannot be abated for inventory and supplies.
(Ord. 641, passed 11-20-2006; Am. Ord. 715, passed 4-18-2011)