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Paris, Texas Economic Development Corporation
<br />POLICY STATEMENT
<br />CRITERIA AND GUIDELINES FOR TAX ABATEMENT
<br />Capital Investment, Payroll and Job Creation Criteria
<br />A tax abatement may be made available to employers who are creating jobs and increasing new capital investment
<br />with respect to an authorized facility located anywhere within the City or its extra territorial jurisdiction based on
<br />the following criteria.
<br />1. To be eligible for any tax abatement, there must be a minimum capital investment in the authorized facility of
<br />$250,000 and at least ten (10) new jobs added to the employer's labor force. The chart below provides
<br />guidelines that will be considered to qualifv for tax abatement.
<br />Capital Investment
<br />Minimum Annual
<br />Payroll Created
<br />Newly Created
<br />Jobs
<br />Possible Abatement
<br />(1st 3 Years Only)
<br />$250,000- $350,000
<br />$125,000
<br />10 -25
<br />20%
<br />$350,0014500,000
<br />$325,000
<br />26 -5
<br />30%
<br />$500,001 4750,000
<br />$635,000
<br />51 -75
<br />40%
<br />$750,00141,000,000
<br />$945,000
<br />76 -10
<br />50%
<br />$1,000,00141,250,000
<br />$1,260,00
<br />101 -125
<br />60%
<br />$1,250,00141,500,000
<br />$1,570,00
<br />126 -15
<br />70%
<br />$1,500,00141,750,000
<br />$1,880,00
<br />151-1751
<br />80%
<br />$1,750,001- $2,000,000
<br />$2,190,00
<br />176 -20
<br />90%
<br />$2,000,00143, 00,000
<br />$2,500, 00
<br />201 -225
<br />100%
<br />When an abatement percentage has been agreed upon it shall be granted based on the following schedule. This
<br />chart does not imply that 100% of the valuation will be abated. It refers to the ratio of the agreed -to
<br />abatement.
<br />Timeframe
<br />Percent of Abatement Agreed To
<br />Year 1
<br />100%
<br />Year 2
<br />100%
<br />Year 3
<br />100%
<br />Year 4
<br />80%
<br />Year 5
<br />60%
<br />Year 6 1
<br />40%
<br />Year 7
<br />20%
<br />Year 8
<br />Valuation fully back on tax rolls 0%
<br />3. Any project with a capital investment of more than ten million dollars ($10,000,000), accompanied by a
<br />newly created minimum annual payroll of two and one -half million dollars ($2,500,000), or creating more
<br />than two hundred twenty-five (225) jobs will be individually negotiated.
<br />4. No abatement will be granted for more than specified in state law.
<br />5. If a newly created business is located or will locate within an enterprise zone, an additional 10 to 20%
<br />abatement may be available as individually negotiated, with total abatement not to exceed 100 %.
<br />6. The City recognizes a significant difference in the valuation of real property and personal property. Because
<br />of depreciation schedules, often the abatement of personal property is basically a tax exemption. For this
<br />reason, the abatement schedule for personal property versus real property may be different.
<br />7. if personal property should become obsolete and be replaced while under an abatement agreement, the
<br />replacement personal property is not eligible for abatement.
<br />VI. Tax Abatement for Existing Employers Regarding Real or Personal Property.
<br />The City recognizes the value of its existing employers to the wellbeing of the community. The
<br />City desires to encourage existing employers to remain in the City and to improve their
<br />respective businesses and industries, as well as their profitability.
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