Tax Abatement Guidelines
Guidelines and Criteria for Granting Tax Abatement in the City of Palacios in an Enterprise or Reinvestment Zone
Section 2 ABATEMENT AUTHORIZED
(a) Authorized Tax Abatement Categories.
The following categories may be eligible for abatement:
- Manufacturing facility
- Residential housing
- Research facility
- Aquaculture/agriculture facility
- Regional distribution facility
- Regional service facility
- Regional entertainment/tourism facility
- Commercial office facility
- Retail facility
- Commercial use vehicles, vessels, or aircraft
- Other basic industry
(b) Authorized Date
A facility shall be eligible for tax abatement if it has applied for such abatement prior to the commencement of construction, provided, that such facility meets the criteria granting tax abatement in reinvestment zones created in the City of Palacios pursuant to the guidelines and criteria adopt by the City Council and will be considered on a case-by-case basis.
(c) Creation of New Value.
Abatement may only be granted for the additional value of eligible property improvements made subsequent to and listed in an abatement agreement by the City of Palacios and the property owner and/or lessee, subject to such limitations as the City Council may require.
(d) New and Existing Facilities.
Abatement may be granted to new facilities and improvements to existing facilities for purposes of modernization and expansion if they create new jobs and increase tax base as required by this policy, or if they are needed to retain existing jobs, except in the case of residential or retail tax abatement where jobs and other listed criteria are not a condition for abatement.
(e) Eligible Property.
Abatement may be extended to the value of buildings, structures, fixed machinery, equipment, personal property, site improvements plus that office space and related fixed improvements necessary to the operation and administration of the facility. The economic life of the property, improvements and personal property must exceed the life of the abatement agreement.