DIVISION C. Tax Abatement

Sec. 10-793. Tax Abatement

In accordance with state law, the City Council finds that all designated landmarks structures are historically significant and entitled to tax relief in order to encourage historic preservation. Fifty percent (50%) of the assessed value of any building, structure or site listed on the Tyler historic landmark register and the land necessary for access to and from the building, structure, or site, up to a maximum assessed value amount of $ 2,000,000, must be exempt from annual City ad valorem taxation, provided that such building, structure or site is listed on the register on the first day of January of the applicable tax year. As long as the property remains on the Tyler historic landmark register, has not changed ownership, and otherwise remains in compliance with all applicable ordinances, the owner shall not be required to re-apply for exemption on an annual basis. (Ord. 0-98-81, 10/7/98); (Ord. 0-2005-61; 8/17/05) (Ord. No. 0-2012-83, 10/10/12)

Sec. 10-794. Tax Abatements for Historic Landmarks

   a.   The tax abatement provided for in this section is intended to encourage historic preservation within the City of Tyler. Any building or structure that has been designated as a historic landmark pursuant to the terms of this Article, and which is substantially rehabilitated as provided herein, may have abated one hundred percent (100%) of the amount of any increase in the assessed value for purposes of ad valorem taxes levied by the City of Tyler in excess of the assessed value of the property for a period of five (5) years following issuance of a Certificate of Appropriateness. Said tax abatement must only apply to the increase in the assessed value of the property over the assessed base value of the property, regardless of the actual value of any permits and improvements. In order to be eligible for tax abatement, said renovations must be at a minimum cost of thirty thousand dollars ($30,000.00) and must be completed within a period of two (2) years from the date of issuance of a Certificate of Appropriateness. The tax abatements would become applicable to the property in January of the first tax year following the date of issuance of a Certificate of Appropriateness. The tax abatements must continue in effect during the established five-year period as long as the property remains on the Tyler historic landmark register. The total amount of said improvements subject to tax abatement per year for the five-year period on a single piece of property must not exceed two million dollars ($2,000,000).

   b.   To be eligible for property tax abatement under this section, a property must meet the following requirements:

      1.   The building or structure must meet the requirements for, and have previously been designated as, a historic landmark pursuant to section 10-782.

      2.   The structure or building upon which the renovation is to occur must be at least fifty (50) years old or older;

      3.   The tax abatement under this section is available for buildings or structures on both residential and commercial property.

      4.   Any renovations or improvements must conform to the Secretary of the Interior’s Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings, a copy of which is available in the Planning Department.

   c.   Application process. Applications for tax abatement under this section are voluntary. Any owner seeking tax abatement under this section must file an application for a Certificate of Appropriateness in conformance with section 10-786 . Said application must include a projection of the estimated construction time and predicted completion date of the historic repair or rehabilitation. The requirements of sections 10-786 and 10-783 must govern the application, granting and removal, and maintenance process for the Certificate of Appropriateness. However, the actual granting of the tax abatement under this section shall be subject to the discretion and approval of the City Council. After a public hearing, the City Council may by ordinance approve the abatement provided for in this section. If approved by City Council, the applicant for abatement shall cause a copy of the ordinance and application for exemption to be sent to the Smith County Appraisal District not later than January 1st of each subject tax year. (Ord. No. 0-2017-69; 8/23/17)

   d.   Time for completion; re-capture. If the improvements, renovation or restoration repair work on a particular piece of property are not completed within two (2) years from the date of issuance of the Certificate of Appropriateness, any and all tax abatements previously received on said property during the two-year period must be revoked, and the City may re-capture all tax abatements that the property owner received during said two-year period. In addition to the re-capture, the property owner shall not be eligible for the tax abatement for the remaining three (3) years.

   e.   Eligible costs. Eligible costs must include construction, reconstruction, alteration, change, restoration, removal or demolition of any exterior architectural feature of a building or structure on the Tyler historic landmark register. Materials and labor for repairing, replacing or adding any of the following shall be eligible, if expressly approved as part of the Certificate of Appropriateness:

      1.   Structural walls;

      2.   Exterior doors;

      3.   Windows;

      4.   Exterior brick veneers or treatments;

      5.   Roof and gutter where necessary for structural integrity;

      6.   Facade items;

      7.   Limited demolition, not more than fifteen percent (15%) of the original structure, and cleanup related to the eligible costs in this subsection;

      8.   Exterior paint (consistent with those colors available during the time period that the structure was built);

      9.   Foundations;

      10.   Structural subfloors;

      11.   Structural ceilings;

      12.   Termite damage and treatment;

      13.   Fixtures and decorative items attached to the main structure, or that contribute to the historic integrity of the property;

      14.   Fencing that contributes to the historic integrity of the property.

   f.   Ineligible costs. Ineligible costs shall include the following:

      1.   Overhead;

      2.   Taxes;

      3.   Supervisor payroll;

      4.   Repairs of construction equipment;

      5.   Tools;

      6.   Plumbing and electrical wiring;

      7.   Mechanical equipment; air conditioning systems;

      8.   Any other items not directly related to the exterior appearance or the structural integrity or viability of the structure, except that interior items for commercial properties shall be allowed.

   g.   Use in conjunction with other incentives. The tax abatement authorized by this section may be used in conjunction with other types of abatements or incentives, either existing and that may be developed in the future, unless otherwise prohibited by statute or ordinance.

   h.   Sunset review. Before the fifth anniversary of the date of re-adoption of this section, the City Manager or designee shall review the tax abatement program established herein. The City Manager or designee shall review the effects of, and any benefits or problems associated with, this program. Following such review, the City Manager or designee shall make a recommendation to the City Council regarding whether to continue, modify, or repeal this section. (Ord. No. 0-2005-61; 8/17/05) (Ord. No. 0-2008-8; 1/9/08) (Ord. No. 0-2012-83, 10/10/12) (Ord. No. 0-2017-69; 8/23/17) (Ord. No. 0-2022-89; 9/28/2022)

Sec. 10-795 – 799. Reserved

ARTICLE XII. ANNEXATION

DIVISION A. Boundary Extension and Annexation

   Sec. 10-800.   Boundary Extension and Annexation

   Sec. 10-801.   Annexation Goals and Policies

   Sec. 10-802.   City Limits in 1992

   Sec. 10-803 – 899.   Reserved

DIVISION A. Boundary Extension and Annexation

Sec. 10-800. Boundary Extension and Annexation

   a.   The city council may extend the city limits and annex additional territory lying adjacent to the city by passing an ordinance setting forth the metes and bounds of the area sought to be annexed, declaring the territory within the defined boundaries to be a part of the city, and ordering it subject to all of the rules and regulations applicable to the city in accordance with state law.

   b.   An applicant(s) seeking annexation pursuant to Section 43.028, Texas Local Government Code, or successor, must file a petition with the planning department containing the following information and conforming to the following requirements:

      1.   A metes and bounds description of the tract to be annexed.

      2.   A list of all qualified voters who reside on the tract.

      3.   The petition must be signed by each owner.

      4.   Each owner's signature must be acknowledged in the manner required for deeds.

      5.   The application must be accompanied with a plat of the tract to be annexed, drawn to scale, which must:

         (a)   Identify the ownership of each parcel of land;

         (b)   Show any public ways within or bounding the tract;

         (c)   Show any easement within or bordering the tract;

         (d)   Show the existing City limits boundaries.

      6.   Information required for original zoning.

      7.   The application must be accompanied with a filing fee in an amount established by the city council and kept on file in the planning department. (Ord. 0-97-2, 1/22/97)