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For purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
ABATEMENT. The full or partial exemption from city ad valorem taxation of the increased values of eligible properties in a Reinvestment Zone designated by the city for economic development purposes pursuant to the Act.
AGREEMENT. A contractual agreement between a property owner and/or lessee and the city for the purposes of tax abatement.
BASE YEAR VALUE. The assessed value of either the applicant's subject real property and improvements on January 1 of the year of the execution of the agreement plus the agreed upon value of any property improvements made after January 1 but before execution of the agreement, and/or the assessed value of any tangible personal property located on the owner's real property at any time prior to the abatement period covered by the agreement.
ECONOMIC LIFE. The number of the years a property improvement is expected to be in service in a facility; provided, however, in no event shall the number of years exceed the depreciation allowance specified in the Federal Internal Revenue Service Code.
ENTERPRISE ZONE. An area designated pursuant to the Texas Enterprise Zone Act, Tex. Gov’t Code, Ch. 2303.
EXPANSION. The addition of buildings, structures, fixed machinery, or equipment for the purpose of increasing production capacity.
FACILITY. Property improvements completed or in the process of construction which together comprise an integral whole.
LEASE. A relationship whereby the business applying for a tax abatement has a contract for exclusive possession of either the real property on which improvements are to be made and/or movable personal property to be used for the operation of the business for a defined period of time.
MODERNIZATION. The replacement and upgrading of existing facilities which increase the productive input or output, updates the technology, or substantially lowers the unit cost of operation, and extends the economic life of the facility. MODERNIZATION may result from the construction, alteration, or installation of buildings, structures, fixed machinery, or equipment. It will not be for the purpose of reconditioning, refurbishing, repairing, or completion of deferred maintenance.
NEW FACILITY. A property previously undeveloped which is placed into service by means other than expansion or modernization.
PERSONAL PROPERTY. Equipment and/or tools used, or bought or leased for use, in the operation of the business applying for tax abatement, other than that which was located on the real property at any time before the period covered by the tax abatement agreement, and other than inventory, supplies and/or office equipment.
REAL PROPERTY. The area of land defined by legal description as being owned or leased by the business applying for a tax abatement, including any improvements thereto, which is to be improved and valued for property tax purposes, and which is to be included in the tax abatement.
REINVESTMENT ZONE. An area within the boundaries of the city that has been found to meet the requirements of the Tex. Property Tax Code, §§ 312.201 through 312.202, V.A.C.S, and designated as such.
(Ord. 641, passed 11-20-2006; Am. Ord. 715, passed 4-18-2011)