I. STATEMENT OF INTENTIONS.
The Titus County Commissioners’ Court and City Council of the city have concurred on the intent to establish a reinvestment zone as authorized by the Texas Reinvestment Zone Act, Tex. Tax Code, 312.001 et seq.As authorized by the Act, certain incentives will be available to the qualifying businesses which choose to locate within the designated area.
(`87 Code, Ch. 22, Attachment 2)
II. QUALIFYING BUSINESSES.
A. Location. To be eligible for any incentive, a business must locate within the boundaries as established by the County of Titus and city, as approved by the Texas Department of Commerce. The area designated is shown as Appendix A to this statement.
B. Restrictions of type of entities qualifying. A qualifying business shall include any industrial concern, manufacturing concern or wholesale or retail concern locating within the boundaries of the reinvestment zone. Private residences, multifamily dwellings or apartments locating within the boundaries of the reinvestment zone number one shall not qualify for any of the incentives provided for in this statement. In addition, any business which is determined by the Texas Department of Commerce to be ineligible for participation in a reinvestment zone shall not qualify for these incentives outlined in this statement. Any determination as to qualification of a business for such incentives shall be submitted to the administrative authority responsible for the administration of the reinvestment zone for determination as to its qualification.
C. Relocation of existing business. Any business existing in Titus County, Texas which relocates from an existing location outside the boundaries of the reinvestment zone to a location within the Reinvestment Zone shall be eligible for those incentives provided in this statement.
(`87 Code, Ch. 22, Attachment 2)
III. REAL PROPERTY TAX ABATEMENT INCENTIVES.
The County of Titus, City of Mount Pleasant, Texas, and the other taxing units overlapping the territory inside the reinvestment zone shall abate taxes on any increase in value of those real property improvements for those qualifying businesses which locate within the boundaries of the reinvestment zone. The improvements for which tax abatements shall qualify shall be measured from the greater of the appraised values as shown on the records of the appropriate taxing authorities or the purchase price of the real property as provided by the purchaser of the property. Such taxes shall be abated for a period of seven years from the time such improvements are added to the tax rolls of the various entities as set forth in the Guidelines and Criteria of the zone.
(`87 Code, Ch. 22, Attachment 2)
GUIDELINES AND CRITERIA
Tax Abatement in Mount Pleasant, Texas
Tax Abatement in Mount Pleasant, Texas
SECTION 1. DEFINITIONS.
ABATEMENT. The full or partial exemption from ad valorem taxes of certain real property as defined in the Tex. Property Tax Code and shall include personal property, as defined in said code, in a reinvestment zone designated by an affected jurisdiction for economic development purposes.
AFFECTED JURISDICTION. The city and any governmental entity or school district, the majority of which is located in Mount Pleasant, that levies ad valorem taxes upon and provides services to property located within the proposed or existing reinvestment zone designated by the city.
AGREEMENT. Written contractual agreement between a property owner and/or lessee and an affected jurisdiction for the purpose of tax abatement.
BASE YEAR VALUE. The assessed value of eligible property January 1 preceding the execution of the agreement, plus (if applicable) the agreed upon value of eligible property improvements made after January 1 but before the execution of the agreement.
EXPANSION. The addition of buildings, structures, machinery or equipment for purposes of increasing capacity.
FACILITY. Property improvements completed on commercial and industrial buildings and structures, including machinery and equipment.
IMPROVEMENTS. Includes for the purpose of establishing for the eligibility under subsections 7(b), any activity at the location, including but not limited to repairs to existing structures, new construction or the demolition of unneeded structures.
REINVESTMENT ZONE. A specific parcel of property designated by the city or the county (as applicable) within which a tax abatement can be granted.
(`87 Code, Ch. 22, Attachment 2)
SECTION 2. ABATEMENT AUTHORIZED.
(A) Authorized facility. A facility may be eligible for abatement if it is a commercial or industrial facility, including retail establishments.
(B) Creation of new value. Abatements may only be granted for the additional value of eligible property improvements made subsequent to and specified in an abatement agreement between the affected jurisdiction and the property owner or lessee subject to such limitations as the governing bodies may require.
(C) New and existing facilities. Abatement may be granted for new facilities and improvements to existing facilities for the purpose for modernization or expansion.
(D) Eligible property. Abatement may be extended to the value of building structures, fixed machinery and equipment, site improvements, plus that office space and related fixed improvements necessary to operation and administration of the business.
(E) Ineligible property. The following property shall be fully taxable and ineligible for tax abatement: private residences, multi family dwellings, apartment complexes, inventories, rolling stock, property owned or used by the State of Texas or its political subdivisions or by any organization owned, operated or directed by a political subdivision of the State of Texas.
(F) Terms of abatement. Abatement shall be granted effective with the January 1 valuation date immediately following the completion of the value added project prior to going on the tax roles.
(G) Economic qualifications. Any business existing in the city which relocates from an existing location outside the boundaries of the reinvestment zone to a location within the reinvestment zone shall be eligible for tax abatement based on value added at the new location.
(H) Maximum available abatement. Taxes shall be abated for a period of seven years from the time such improvements are added to the tax rolls of the various entities.
(I) Nontransferability. In the event property is sold which is under a tax abatement agreement, the agreement shall terminate and the abated property shall become fully taxable for the year in which the sale is consummated and all subsequent years.
(`87 Code, Ch. 22, Attachment 2)
SECTION 3. APPLICATION.
(A) Any present or potential owner of taxable property in an affected jurisdiction may request the creation of a reinvestment zone and tax abatement by filing a written request with the affected jurisdiction and attaching a plat and metes and bounds description effectively describing the said reinvestment zone.
(B) The application shall consist of a completed application form accompanied by a general description of the proposed use and the general nature and extent of the modernization, expansion or new improvements to be undertaken, a descriptive list of the improvements which will be a part of the facility, a map and property description and a time schedule for undertaking and completing the planned improvements.
(C) The initial application for the creation of a reinvestment zone and tax abatement shall be made to the designated administrative liaison who is appointed jointly by the Mayor of the city and the County Judge of Titus County. The reinvestment zone governing body shall provide the affected jurisdiction a feasibility study setting out the impact of the proposed new reinvestment zone area.
(`87 Code, Ch. 22, Attachment 2)
SECTION 4. PUBLIC HEARING.
(A) Should any affected jurisdiction be able to show just cause in its public hearing why the granting of an abatement will have a substantial adverse effect on its bonds, tax revenue, service capacity or the provision of service, that showing shall be the reason for the governing body to deny any designation of the reinvestment zone, the granting of abatement or both.
(B) Neither the reinvestment zone nor the abatement agreement shall be authorized if it is determined that:
(1) There would be a substantial adverse affect on the provision of government service or tax base;
(2) The applicant has insufficient financial capacity;
(3) Planned or potential use of property would constitute a hazard to public safety, health or morals; or
(4) Violation of other codes and laws.
(`87 Code, Ch. 22, Attachment 2)
SECTION 5. AGREEMENT.
Pursuant to Tex. Rev. Civ. Stat., Art. 1066(f), § 5, the city agrees to create a reinvestment zone for commercial and industrial tax abatement encompassing only the area described in Appendix A.
(`87 Code, Ch. 22, Attachment 2)
SECTION 6. RECAPTURE.
(A) In the event that a facility is completed and begins business but subsequently discontinues business for any reason except a natural disaster for a period of one year during the abatement period, then the abatement agreement shall terminate and so shall the abatement of the taxes for the current and future calendar years during which the business no longer operates. The taxes which were to be abated for that calendar year shall be paid to the affected taxing authorities within 60 days from termination.
(B) Should the governing body determine that the company or individual is in default according to the terms and conditions of its agreement, the governing body shall notify the company or individual in writing at the address stated in the agreement and if such is not cured within 60 days from the date of such notice (“cured period”), then the agreement shall be terminated.
(C) In the event that the company or individual:
(1) Allows its unabated ad valorem taxes owed any of the affected jurisdictions to become delinquent and fails to timely and properly follow the legal procedure for their protests or contests;
(2) Fails to continue to operate beyond the terms of abatement for a period half as long as the abatement; or
(3) Violates any of the terms and conditions of the abatement agreement with any of the affected jurisdictions and fails to cure during the “cure period,” the agreement then shall be terminated by every affected jurisdiction and all taxes previously abated by virtue of every agreement will be recaptured by each affected jurisdiction and shall be paid by applicant to each affected jurisdiction within 60 days of the termination.
(`87 Code, Ch. 22, Attachment 2)
SECTION 7. ADMINISTRATION.
(A) The Chief Appraiser of the county shall annually determine an assessment of the real and personal property comprising the reinvestment zone. Each year, the company or individual receiving abatement shall furnish the Assessor with such information as may be necessary for abatement. Once value has been established, the Chief Appraiser shall notify the affected jurisdictions which levies taxes on the amount of the assessment.
(B) The agreement shall stipulate that the employees and/or designated representatives of the affected jurisdictions will have access to the reinvestment zone during the term of the abatement to inspect the facility to determine if the terms and conditions of the agreement are being met. All inspections will be made only after giving 24-hours' prior notice and will only be conducted in such manner as to not unreasonably interfere with the construction and/or operation of the facility. All inspections will be made with one or more representatives of the company or individuals in accordance with its safety standards.
(C) Upon completion of construction, the affected jurisdictions shall annually evaluate each facility and report possible violations to the contract and agreement to the governing bodies and its attorneys.
(`87 Code, Ch. 22, Attachment 2)
SECTION 8. SUNSET PROVISION.
These guidelines and criteria are effective upon the date of their adoption and will remain in force for two years at which time all reinvestment zone and tax abatement contracts created pursuant to its provisions will be reviewed by the governing bodies to determine whether the goals have been achieved. Based on that review, the guidelines and criteria will be modified, renewed or eliminated, providing that such actions shall not affect existing contracts.
(`87 Code, Ch. 22, Attachment 2)