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V. <br />Terms Specific to the Residential Tax Abatement Agreement <br />Texas Tax Code Chapter 312 <br />A. Reinvestment Zone; NAICS Code. <br />5.1 The properties subject to this residential Tax Abatement Agreement are located <br />within City of Paris Reinvestment Zone No. 2025-1. For purposes of reporting this Tax <br />Abatement Agreement to the Office of the Comptroller of the State of Texas, the applicable <br />NAICS Code is 2361. <br />B. Term <br />5.2 The term of this Tax Abatement Agreement shall commence on December 8, 2025. It <br />is the intention of this Tax Abatement Agreement that Owner receive an abatement of taxes on <br />each Structure constructed as it is completed and issued a Certificate of Completion by City. <br />Consequently, each Structure constructed and completed shall have its own five (5) year <br />abatement period. The abatement period for each constructed and completed dwelling unit shall <br />commence on January 1 of the year following City's issuance of a Certificate of Completion on <br />said dwelling unit and end on the fifth (5a`) anniversary of the commencement of the abatement <br />period. This Tax Abatement Agreement shall terminate upon the expiration of the final <br />abatement period granted herein unless otherwise terminated by default or agreement of the <br />Parties. <br />C. Abatement <br />5.3 Subject to the terms and conditions of this Economic Development Agreement and <br />Tax Abatement Agreement, in further consideration for the construction and completion of the <br />Improvements required herein (new construction of four (4) single-family homes) and subject to <br />the rights and holders of any outstanding bonds of the City, a portion of the maintenance and <br />operations (M & O) ad valorem property taxes assessed upon each Improvement and otherwise <br />owed to the City shall be abated for a period of five (5) years in an amount equal to 100% per <br />year of the taxes assessed upon the increased value of the Improvements made by Owner to the <br />Properties described in Section 3.1 of this Agreement, over the value in the year by which this <br />agreement is executed (the "Base Value"), in accordance with the terms of this Agreement and <br />all applicable state and local regulations or valid waivers thereof; provided that the Owner shall <br />have the right to protest or contest any assessment of the Properties and said abatement shall be <br />applied to the amount of taxes finally determined to be due as a result of any such protest or <br />contest. For the purposes of this Agreement, the Base Value of the existing real property shall be <br />deemed to be the value as shown on the tax rolls of the Lamar County Appraisal District as of <br />January 1, 2025 to wit: SIX THOUSAND EIGHT HUNDRED FORTY AND N0/100 <br />DOLLARS ($6,840.00.) <br />5.4 This abatement is granted in accordance with the City's Guidelines and Criteria <br />for the Program, a copy of which is attached hereto as Exhibit 2, provided, however, that in the <br />event of any conflict between this Agreement Exhibit 2, this Agreement shall control. <br />5 <br />