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 5. Once such value has been established, the Chief Appraiser shall notify the affected Taxing Jurisdictions which levy taxes on such property and also notify the Par -is EDC. 6. The employer, owner or lessee of eligible property requesting tax abatement within a reinvestment zone shall, prior to the commencement of eligible property improvements, agree to expend a designated surn of money and to create or retain a certain number of jobs, or annual payroll as further defined below. . . .......... ._ , " Capital Investment, Payroll and Job Creation Criteria -- - — ------- A tax abatement may be made available to employers who are increasing new capital investment and creating jobs with respect to an authorized facility located anywhere within the area served by theTaxing Jurisdictions based on the following criteria. 1. To be eligible for any tax abatement, there must be a mininiurn capital investment in the authorized facility of $1,000,000 and at least ten (10) new jobs added to the new employer's labor force. 2. Any project with a capital investment of more than twenty-five million dollars ($25,000,000), AND accompanied by a newly created minimum annual payroll of two and one-half million dollars ($2,500,000), OR creating more than two hundred twenty-five (225) jobs will be individually negotiated. 3. As specified in state law, no abatement will be granted for more than 10 years and the total abatement shall not exceed 100%. 4. A newly created business must be (or will be) located within an enterprise zone or a designated reinvestment zone, 5. 'The taxing Jurisdictions recognize asignificant difference in the valuation of real property versus personal property. Because of depreciation schedules, the abatement of personal property could result in a tax exemption. For this reason, the abatement schedule for personal property versus real property may be different. Each industrial account is looked at and valued oil an individual basis by the Lamar County Appraisal District (LOAD). The typical depreciation used for industrial accounts by LCAD is as follows: a, Computers -- 3 year life, b. Furniture &Fixtures - 10 year life c. Vehicles 7 to 10 year life (depending on type) d. Machinery & Equipment - 15 year life (maybe longer or shorter depending on the type) 6, For each abatement request the PEDC will evaluate the equipment (personal property) investment and useful life separate from the real estate (real property) investment to determine the length of the abatement for each. 7. If personal property should becorne obsolete and be replaced while under all abatement agreement, the replacement personal property is not eligible for abatement. 8. The charts below provide capital investment guidelines to qualify for tax abatement and the related schedule and percentage of abatement.