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memorandum <br />TO: City Council <br />Rose Beverly, City Manager <br />FROM: Stephanie H. Harris, City Attorney <br />SUBJECT: Re -adoption of Industrial Tax Abatement Policy <br />DATE: January 12, 2026 <br />Item No. 14 <br />BACKGROUND: Municipalities that offer ad valorem tax abatements are required to declare <br />their intent to participate in ad valorem tax abatement agreements and to adopt and maintain a tax <br />abatement policy. The guidelines and criteria in the policy may be very broad, or very specific <br />and detailed like the one used in Paris. Pursuant to Chapter 312 of the Texas Tax Code, such <br />policies must be readopted every two years. <br />STATUS OF ISSUE: The current policy was approved in January 2024 for a period of two years, <br />so Council needs to re -adopted it in order to be able to continue to participate in a tax abatement <br />program. A change in the law since 2018 requires that council conduct a public hearing prior to <br />re -adoption. <br />BUDGET: NA <br />RECOMMENDATION: Conduct a public hearing and adopt a resolution restating the city's intent <br />to participate in property tax abatement agreements and re -adopting existing guidelines. <br />