07-B Tax Abatement Guidelines - Laserfiche WebLink

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Property located on the Real Property in each year covered by the agreement other than Personal Property that was located on the Real Property at any time before the period covered by the agreement. Inventory or supplies cannot be abated as Personal Property. Tax abatement may only be granted for additional value of eligible Property improvements made subsequent to and specified in an abatement agreement between the City and the Property owner or lessee subject to such limitation as the City may require. The additional value must exceed any reduction in the fair market value of other property of the owner already on the tax role with the jurisdiction of the City. Change in appraised value does not qualify for abatement except in an instance where a previously vacant Authorized Facility is utilized. Value added to the tax rolls must come from actual capital expenditures. The negotiation of tax abatement contracts will be conducted by the Paris Economic Development Corporation, in conjunction with the City Manager or designee to the Tax Abatement Committee. In determining where and how tax abatement will be utilized, the Tax Abatement Committee will examine the potential return on the public's investment. Return on public investment will be measured in terms of (i) Jobs created, (ii) Jobs retained in cases of existing Employers within the City, and (ill) broadening of the tax base, and expansion of the economic base. A property owner and/ or lessee shall be eligible for tax abatement only upon the following terms and conditions: a) If the Property involved is an Authorized Facility. b) If the Property involved is a Historic Property. In the City Historic Districts there are certain commercial and residential tax exemptions allowed. Exterior improvements in the historic districts are allowed at 100% for seven (7) years with a minimum investment of $5,000 for residential property and $10,000 for commercial property. New residential construction requires a minimum investment of $100,000 to be considered for a three (3) year 100% exemption. New commercial construction requires a minimum investment of $200,000, for a 100% tax exemption for three (3) years. c) If there will be the creation of new value. Abatements may only be granted for the additional value of eligible Real and Personal Property improvements, subject to such limitations as the City may require. Real Property tax abatement may be granted only to the extent that its value for each year of the agreement exceeds its value for the year in which the agreement is executed. d) If there will be new Authorized Facilities created, or if existing Authorized Facilities will be improved for purposes of modernization or expansion. e) Eligible Property. Abatement may be extended to the value of buildings, structures, fixed machinery and equipment, site improvements, tangible personal property, and that office space and related fixed improvements necessary to the operation and administration of the Authorized Facility; provided, however, that inventory or supplies shall not be eligible for abatement. Eligible property for which abatement may be granted includes nonresidential real 4 ~--,. .- -r