Participation in Residential Tax Abatements and Guideines and CriteriaRESOLUTION NO. 2023-018
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS RE-
AUTHORIZING THE CITY TO BECOME ELIGIBLE TO PARTICIPATE IN
RESIDENTIAL TAX ABATEMENTS AND APPROVING GUIDELINES AND
CRITERIA FOR THE RESIDENTIAL TAX ABATEMENT PROGRAM; MAKING
OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, Sec. 312.002 of the Texas Tax Code requires local taxing entities to state their
intent to participate in abatement agreements and to adopt guidelines and criteria for granting
tax abatements; and
WHEREAS, on October 14, 2013 in Ordinance No. 2013-036, the City Council designated
Reinvestment Zone No. 2013-1 for residential tax abatements; and
WHEREAS, concurrent with Ordinance No. 2013-036, the City Council also approved
Resolution No. 2013-036 electing to be eligible to participate in a residential tax abatement
program and approving Guidelines and Criteria for Residential Tax Abatement Program as
required by statute; and
WHEREAS, on February 9, 2015, the City Council passed Ordinance No. 2015-002
amending Reinvestment Zone 2013-1 for Residential Tax Abatements to expand it to include all
Council Districts in the City and designated the new reinvestment zone as Reinvestment Zone No.
2015-1; and
WHEREAS, on January 9, 2017, April 22, 2019, and April 12, 2021, the City Council
approved Resoulutions re -authorizing the City to become eligible to participate in residential tax
abatements and approving guidelines and criterial for the residential tax abatement program; and
WHEREAS, in 2020, City Council re -authorized Reinvestment zone 2015-01 and renamed
it Reinvestment Zone No. 2020-1; and
WHEREAS, pursuant to Texas Tax Code Sec. 312.002(c), guidelines and criteria for tax
abatements are effective for two years from the date adopted; and
WHEREAS, the City Council conducted a public hearing at its regular meeting on April 10,
2023 as required by law wherein the public was invited to comment on renewing the Residential
Tax Abatement Program; and
WHEREAS, having considered testimony provided at said public hearing, the City Council
continues to desire to participate in a residential tax abatement program in the City of Paris and
has been presented Guidelines and Criteria for a Residential Tax Abatement Program;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, THAT:
Section 1. The findings set out in the preamble to this resolution are hereby in all things
approved.
Section 2. The City hereby elects to be eligible to participate in a residential tax abatement
program and adopts the Guidelines and Criteria for Residential Tax Abatement Program attached
hereto and incorporated herein as Exhibit "A".
Section 3. This resolution shall become effective from and after the date of passage.
PASSED AND APPROVED this 10th day of April, 2023.
CITy0�,
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ATTEST:
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jI)aice sty Clerk "TEXPS.\`��
w,D AS TO FORM:
1 4� � ;-,
H. Harris, City Attorney
Paula Portugal, Mayor'
RESIDENTIAL TAX ABATEMENT PROGRAM
GUIDELINES AND CRITERIA
CITY OF PARIS, TEXAS
APRIL 10, 2023
I. GENERAL PURPOSE AND OBJECTIVES
The City of Paris will offer residential tax abatement as a stimulus for economic development in
designated reinvestment zones located within the corporate city limits of the City of Paris, Texas.
The policy of the City is to grant residential tax abatement for new residential structures and
modernization, rehabilitation or expansion of existing residential structures that meet minimum
investment threshold and comply with these Guidelines and Criteria. All applicants shall be
considered on a case-by-case basis.
II. DEFINITION OF TERMS
Act -means the Property Redevelopment and Tax Abatement Act, Texas Tax Code Ann. 312.001 et. seq.,
as amended from time to time.
Agreement -means a contractual agreement between an applicant and the City of Paris for the purposes
of tax abatement.
Applicant -means an owner of real property or his authorized agent located in a reinvestment zone or
proposed reinvestment zone who requests tax abatement in accordance with these guidelines.
Base Year Value — means the assessed value of eligible property on January 1, preceding the date of
execution.
Eligible Property - means new structure or residential improvements located in a designated
Reinvestment Zone.
Modernization — means the replacement, expansion and/or upgrading of single-family residential
improvements for the purpose of reconditioning, refurbishing or expanding a single-family residence.
New Structure - means residential improvements made to a property previously undeveloped which is
placed into use by means other than or in conjunction with expansion or modernization.
Reinvestment Zone - means an area designated in accordance with the Act by the City of Paris. Only
property in a Reinvestment Zone may be eligible for tax abatement.
Residential Improvements - means the construction of new single-family residential structures and all
the appurtenances thereto, and includes modernization of existing structures. This term does not include
duplexes or multi -family structures.
Total Facility - means all improvements constructed.
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Value of Improvements — means the appraised value of the residential improvements as determined by
the Lamar County Appraisal District and as described in the tax abatement agreement.
'1I 1: I 1 I1 I
Any real property located within a designated reinvestment zone and zoned by the City of Paris for
single-family residential development is eligible and may apply for residential tax abatement. As provided
in the Act, abatement may only be granted for the value of the Residential Improvements which exceed
the base year value of the property and which are listed in an Abatement Agreement between the City of
Paris and the property owner, subject to such limitations as the City of Paris may require.
Minimum Investment — To be eligible for residential tax abatement, an applicant must construct a new
structure on their property or make residential improvements to an existing structure in a minimum
amount of twenty percent (20%) of the appraised value of the property as of January 1" of the year that
the tax abatement agreement between the applicant and the City is signed.
Term and Percentage of Abatement - An applicant who has satisfied all the criteria and guidelines for
residential tax abatement as set out herein, will be eligible for tax abatement in accordance with the
schedule below. Abatement will become effective in the tax year following the date of completion of the
improvements and appraisal of the improvements by Lamar County Appraisal District (LOAD).
I1,•/Limp, 101)IN 0we] W.11:7VIiMM
TAX YEAR ABATEMENT*
1 100%
2 100%
3 80%
4 60%
5 40%
6 Zero%
*Abatement is applied only to the increased value of the residential improvements that exceeds the base
year value as determined by the Lamar County Appraisal District.
Applications for residential tax abatement shall be reviewed for completeness. City staff shall determine
whether the application satisfies guidelines and criteria and Staff may request additional information or
documents from Applicant. City Staff will make final recommendations on each application to City
Council. Any person, partnership, organization, corporation or other entity desiring a residential tax
abatement to encourage development within a designated Reinvestment Zone shall comply with the
following procedural guidelines. All tax abatement applications shall be evaluated on their own merits
within the parameters of these Guidelines and Criteria.
Preliminary Application Steps
A. Applicant or applicant's agent shall submit an "Application for Residential Tax
Abatement" contemporaneously with the application for a building permit. If the
building permit is for new single family residential construction or expansion or
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remodeling of a single-family residential structure in an amount that would make the
owner eligible for residential tax abatement, then staff will provide applicant with a form
application for residential tax abatement. If the applicant for the building permit is not the
owner of the real estate and does not make application for residential tax abatement on
behalf of the owner, the city staff shall notify the owner (according to Lamar County
Appraisal District records) by certified mail, return receipt requested, that residential tax
abatement must be filed with the City within ten (10) business days of receipt of the
notice.
B. If applicant chooses not to apply for residential tax abatement at the time that the building
permit is issued, or if the owner fails to respond to the written notice of availability for
residential tax abatement, the opportunity for residential tax abatement is waived. City
staff shall make a record to reflect owner's election not to participate in the program or to
document that owner did not respond to City's notice of opportunity to participate in the
residential tax abatement program. The refusal or waiver to participate in residential tax
abatement by the owner or applicant shall be binding on subsequent owners of the real
property.
C. A complete legal description shall be provided.
D. Applicant shall complete all forms and information detailed above and submit all forms
to the City of Paris Building Official.
2. All information in the application package detailed above will be reviewed for completeness and
accuracy. Additional information may be requested as needed. If necessary, applicant will meet
with City staff to discuss details of the application and to prepare presentation of the application
to the City Council.
The application shall designate whether the structure is new or an existing structure and provide
an estimate of the value of improvements.
4. If Application for residential tax abatement is approved by staff, Applicant must enter into a tax
abatement agreement with the City of Paris and as prepared by the City Attorney.
5. If the Applicant's property is not located within a designated reinvestment zone the application
will be rejected and returned to Applicant.
6. The City Council reserves the right to amend the boundaries of a reinvestment zone or to
designate new reinvestment zones.
7. The City Council reserves the right to amend these policies and guidelines as needed.
The City Attorney will be responsible for drafting the Residential Tax Abatement Agreement in
accordance with state law and these Guidelines and Criteria.
The legal document will include the following:
999 -MUM
Estimated value of new structure or residential improvements to be constructed.
2. Percent of value to be abated each year.
Effective date and the termination date of abatement.
4. Description of the Improvements, schedule of completion, property description and/or site plan.
Applicant agrees to make the new structure or residential improvements available for inspection
by City of Paris, or its authorized representatives, and Lamar County Appraisal District during
construction and upon completion of the project.
6. Contractual obligations in the event of default, violation of terms or conditions, delinquent taxes,
recapture and administration.
[REMAINDER OF PAGE BLANK]
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CITY OF PARIS, TEXAS
APPLICATION FOR RESIDENTIAL TAX ABATEMENT
Property Owner:
L
Mailing Address:
Telephone Number:
Contact (if different than owner):
Name:
Mailing Address:
Telephone Number:
Property Requesting Tax Abatement:
Street Address:
Summary Legal Description Lot: Block: Addition:
Full Legal Description: Include as an attachment a full legal description with metes and bounds.
Improvements:
Type of Improvements (please check one). New Construction: Remodeling:
Estimated Value of Improvements:
Estimated Start Date of Construction:
Estimated Date of Completion of Project:
Description of Project:
Applicant(s):
Date:
Date:
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