10-APPROVE ABATEMENT REQUEST OF T&K MACHINE

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Paris, Texas Economic Development Corporation POLICY STATEMENT CRITERIA AND GUIDELINES F�R TAX ABATEMENT Capital Investment, Payroll and Job Creation Criteria A tax abatement may be made available to employers who are creating jobs and increasing new capital investment with respect to an authorized facility located anywhere within the City or its extra territorial jurisdiction based on the following criteria. To be eligible for any ta�c abatement, there must be a minimum capital investment in the authorized facility of $250,000 and at Ieast ten (]0) new jobs added to the employer's labor force. T'he chart below provides 2. When an abatement percentage has been agreed upon it shall be granted based on the following schedule. This chart does not impty that 100% of the vaivation will be abated. ]t refers to the ratio of the agreed-to abatement. Timeframe Percent of Abatement reed 1'0 Year I 100% Yeal' 2 100% Year 3 roo�ro Year 4 80% Year 5 60% Yeer 6 4b% Year 7 20% Year 8 Valuation full back on tax rolls) 0% 3. Any project with a capital investment of more than ten million dotlars ($] 0,000,004), accompanied by a newly created minimum annual payroll of two and one-halfmillion dollars ($2,500,000), or creating more than two hvndred twenty-five (225) jobs will be individually negotiated. 4, No abatement will be granted for more than specified in state law. S. If a newly created business is located or will locate within an en#erprise zone, an additional 10 to 20% abatement may be available as individually negotiated, with total abatement not to exceed 100%. 6. The City recognizes a significant dif%rence in the valuation of real property and persona[ property. Because of depreciation schedu[es, often the abatement of personal properiy is basically a t� exemption. For this reason, the abatement schedule for personal property versus real property may he different. 7. If persona] property should become obsolete and be replaced while under an abatement agreement, the replacement versonal property is not eligible for abatement. VI. Tax Abaternent for Existing Employers Regarding Real or Personal Property. The City recognizes the value of its existing ennployers to the wellbeing of the community. The City desires to encourage existing emplayers to remain in the City and to improve their respective businesses and industries, as well as their profitability. ��