11 - Authorizing Industrial Property Tax Abatements and guidelines and Criteria

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(Updated 01-08-2024) POLICY STATEMEN CRITERIA AND GUIDELINES FOR TAX ABATEMENT APPENDIX A Term ._ ..... Definition - Abatement or Tax .....-. __.-...... _ _ ....._ The full or partial exemption from ad valorem taxes of certain real and tangible personal Abatement proLerry in a Reinvestment Zone desi ,rated for economic develo men��oses. Agreement or The written legal a'eement for tax abatement between a property Yowner and/or lessee and th e A�_�eements City of Paris Lamar County and Paris Junior College.mmmmm Authorized mm A facility may be eligible for abatement if it is a facility used for manufacturing, research, Commercial or regional distribution, regional services, regional tourist entertainment, other basic industry, or Industrial Facility any primary jobs creating industry (see definitions below). All authorized facility definitions include buildings and structures, including fixed machinery and equipment used in operating e facility. Authorized City y Pans may also desi ate areas of the Ci where residential The Cit Council of the Cit of y designate City ........_ fZ" Residential Facility properties may be considered for abatement of City taxes only. The City of Paris will approve _their residential abatement policies, criteria and guidelines separate from thesepolicies. ManufacturingT......_._ he purpose of which is or will be the manufacture of tangible goods or materials or the Facility processing of such goods or materials by physical or chemical change. Facilities primarily engaged in assembling component parts of manufactured products are also considered manufacturini; facilities. g� Regional --- Use—Primarily to receive, store, service, or distribute goods or materialsmw �'........f P Y g here a majority of Distribution Facilitythe goods or services are distributed to points at least 100 miles from its location in the Taxing Jurisd i c tions of Paris and Regional Tourist tCoun Used in providing amuseen/entertalnment through the admission ofth general public.. �u where Entertainment the majority of users reside at least 100 miles from the Taxing Jurisdictions and where the Facility majority of users are likely to stay in the Taxing Jurisdictions for more than one day and will therefore likely utilize local restaurants and hotel/motel accommodations. Research Facility Used primarily for research or experimentation to improve or develop new tangible goods or materials or to improve or develoi the production processes thereto. Other Basic or Notelsewhere described, used for the production of products or services which result i -n" the Service Industry creation of new jobs and bring new wealth into the Taxing Jurisdictions (e.g. healthcare - mPrimary related industries).___ Jobs Any indust creating rima obs" defined as a'ob that is available at a company for which industry g"P D'J J P Y h Creating Industry a majority of the products or services of that company are ultimately exported to regional, .... statewide, national, or international markets infusing new dollars into the local economy,. Base Y ear Value ...... ...._ _ The assessed value of eligible property as of January 1, preceding the date of execution of the agreement plus the agreed upon value of eligible property improvements made after January 1, but before the execution of the agreement. The Base Year Value may be adjusted either up _.. or down fromyear to year as per renditionsbythe Lamar County Appraisal District. Employer The owner or lessee of property, who is applying for tax abatement and who will provide jobs and capital investment within the Reinvestment Zone or within the Enterprise Zone. Reinvestment Zone An area where the Taxing Jurisdictions have decided to influence development patterns and attract major investments that will contribute to the development of the area through the use of tax abatement for specified improvements. These statues are found in Chapter 312 of the Texas Tax Code. Enterprise Zone .. An area of land designated as such under Chapter 2303 of the Texas Government Code. aaaa__J, Job or Jobs A "job" is when an individual works 40 hours per week for an employer, .__..... .___ pand in the position the individual is provided the benefits normally offered by the employer, such as health insurance, vacation and some form of retirement benefit. A job is not a position filled for the employer as a worker or employee of an employment agency or employment service. "Jobs" also includes "Full-time Equivalent Jobs" defined below. Full time Equivalent q � The intention f� .. _ ........ of the ovenrin bodies is to provide a company the maximum flexibility in nimmng governing p _ (FTE) Jobs their business and making business decisions, especially related to staffing. The following definition of FTE will be reflected in all incentive agreements. An FTE is: 1. An individual working 40 hours per week in a job defined above. 2. A number .ofirart tune*Nobs where the hours worked in each suchob is less than 40 hours per