20 - Resolution Authorizing Participation in Tax Abatements and approving Guidelines and Criteria

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(Updated 01-08-18), POLICY STATEMENT CRITERIA AND GUIDELINES FOR TAX ABATEMENT Property2 fff:_ �igible property for which abatement may be granted includes nonresidential real property and/or tangible personal property not located on the real property at any time before the abatement agreement becomes etTective. 1 Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements, tangible personal property, and that office space and related fixed improvements necessary to the operation and administration of the authorized facility. 4. Inventory or supplies shall not be eligible for abatement, Historic For historic property located in the City of Paris Historic District, see Chapter 30, Article IV of the City of Property Paris Code of Ordinances - Tax Exemption for Historically Significant Sites. Contact the City of Paris, Community Development Department for additional information on these and other programs offered by the City of Paris. . ...... Value and 1. ..... The governing bodies of the local Taxing Jurisdictions will decide whether to grant a tax abatement to an Tenn of applicant, and the amount, if any, of such abatement, on a case-by-case basis and in accordance with these Abatement Policies, Criteria and Guidelines, 2, The tenii of abatements granted under any agreement may not exceed that permitted by applicable state law. 3. The amount of the abatement sliall be based upon a percentage (0 to 100%) of all or a portion of the eligible property within the authorized facility, 4. Abatements may only be granted for the additional value of eligible real and personal property improvements made pursuant to and listed in the agreement between the Taxing Jurisdictions and property owner andYor lessee, subject to such limitations as the Taxing Jurisdictions may require. 5. Real property tax abatement may be granted only to the extent that its value for each year of the agreement ,exceeds its value for the year in which the agreement is executed. 6. If a modernization project includes the replacement of improvements within an authorized facility, the value eligible for abatement shall be the value of the new unit(s), less the value of the replaced unit(s). Abatement The criteria used to evaluate a proposed project application foi- abatement includes, but is not limited to: Evaluation 1.. The dollar amount of the increase in the tax roll. Criteria 2. The number of jobs created or retained by the employer involved. 3. The possible effect on attracting other taxable improvements into the Taxing Jurisdictions. 4. The nature of and overall effect on the Taxing Jurisdictions. 5. The eftect on the safety, health, and morals of the Taxing Jurisdictions' residents. 6. Any substantial long-term adverse effect on the provision of the "faxing Jurisdictions' services or tax bases. 7. Meeting all relevant zoning requirements. 8. Consistent with the comprehensive plan of the City cif Paris and County of Lamar. 9. 'The types and cost of public improvements and services (water and sewer main extensions, streets and roads, etc.) required of the Taxing Jurisdictions. 10, The types and values of public improvements to be furnished by the applicant. Economic To be eligible to receive tax abatement, the planned improvements: Qualification 1. Must be reasonably expected to increase the appraised value of the property. 2. Must be expected to prevent the loss of employment, or assist in the retention or creation ofjobs in the Taxing Jurisdictions during the term of the agreement. 3. Should not be expected to solely or primarily have the effect of merely transferring existing employment from one part of the Taxing Jurisdictions to another without demonstration of increased future investment (dollars or jobs) Or unusual circumstances whereby without such a move employment is likely to be reduced. 4. Must be necessary because capacity cannot be provided efficiently utilizing existing improved property when reasonable allowance is made for necessary improvements or relevant governmental actions. Taxability During the term of the agreement, taxes shall be payable as follows: 1. 'The base year of eligible property as determined each year by the Lamar County Appraisal District, shall be Bully taxable. 1 The additional value of eligible property above the base year value shall be taxable in the manner described in the agreement. 3. The Chief Appraiser of the Lamar County Appraisal District shall annually determine an assessment of the real and personal property conipriSmg the reinvestment zone. 4. Each year, the employer, company or individual receiving an abatement pursuant to an agreement shall . ............ . . ..... — furnish the assessor with such information as may be necessary to determine the amount of any abatement.