Tax Abatement

Property Tax Abatement Act, Tax Code Chapter 312 Overview
A tax abatement is a local agreement between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years. Tax abatement’s are an economic development tool available to cities, counties and special districts to attract new industries and to encourage the retention and development of existing businesses through property tax exemptions or reductions. School districts may not enter into abatement agreements.
Property Tax Abatement Act, Tax Code Chapter 312 Overview

Property tax Abatement
Houston offers the same type of incentive to companies or developers of industrial buildings as Harris County. For investors contracting the construction of buildings with appraisal values of $1,000,000 or more and creating 25 or more jobs by Year 3, they are able to obtain reductions of 50% of their ad valorem taxes payable to the city. At current rates, this is 50% of $1.26873/$00, or $0.634365/$00. Using the same example as above, that translates to $6,343.65 per year for ten years, or $63,436.50 over that period.
City of Houston – Tax Abatement Agreements

 

 

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