2021-012 - Re-Authorizing the City to Become Eligible to Participate in Residential Tax Abatements and Approving Guidlines and Criteria for the Residential Tax Abatement Program

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Value of Improvements — means the appraised value of the residential improvements as determined by the Lamar County Appraisal District and as described in the tax abatement agreement. III. ELIGIBILITY AND GUIDELINES Any real property located within a designated reinvestment zone and zoned by the City of Paris for single-family residential development is e ligible and may apply for residential tax abatement. As provided in the Act, abatement may only be granted for the value of the Residential Improvements which exceed the base year value of the property and which are listed in an Abatement Agreement between the City of Paris and the property owner,,, subject to such limitations as the City of Paris may require. Minimum Investment — To be eligible for residential tax abatement,, an applicant must construct a new structure on their property or make residential improvements to an existing structure in a minimum amount of twenty percent (20%) of the appraised value of the property as of January Ist of the year that the tax abatement agreement between the applicant and the City is signed. Term and Percentage of Abatement - An applicant who has satisfied all the criteria and guidelines for residential tax abatement as set out herein!, will be eligible for tax abatement in accordance with the schedule below. Abatement will become effective in the tax year following the date of completion of the improvements and appraisal of the improvements by Lamar County Appraisal District (EGAD). IV. SCHEDULE OF ABATEMENT TAX YEAR ABATEMENT* 1 100% 2 100% 3 80% 4 60°/a 5 40% 6 Zero% *Abatement is applied only to the increased value of the residential improvements that exceeds the 1:1ase year value as determined by the Lamar County Appraisal District. V. APPLICATION PROCEDURES dvl..a Applications for residential tax abatement shall be reviewed for completeness. City staff shall determine whether the application satisfies guidelines and criteria and Staff may request additional information or documents from Applicant. City Staff will make final recommendations on each application to City Council. Any person, partnership, organization, corporation or other entity desiring a residential tax abatement to encourage development within a designated Reinvestment Zone shall comply with the following procedural guidelines. All tax abatement applications shall be evaluated on their own merits within the parameters of these Guidelines and Criteria. 1. Preliminary Application Steps A. Applicant or applicant's agent shall submit an "Application for Residential Abatement" contemporaneously with the application for a building permit. If building permit is for new single family residential construction or expansion Page 2 of 5 Tax the or