PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Public hearing, discussion and possible approval of a resolution reauthorizing the City of New Braunfels Tax Abatement Policy
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: All
BACKGROUND INFORMATION:
Chapter 312 of the Texas Tax Code authorizes the City to grant tax abatements to promote and retain high-quality development to the City and increase the quality of life for its citizens only after the city elects to become eligible to participate in tax abatement and adopts a Tax Abatement Policy that establishes guidelines and criteria governing its tax abatement program.
Tax abatements provide a mechanism for the City to exempt all or a portion of the City’s portion of the property tax from taxable real property, personal property or both. Before a tax abatement can be granted, the city must publish notice of and hold a public hearing, provide notice to other taxing entities, establish a reinvestment zone by ordinance or order and approve of the agreement at the public meeting. A tax abatement agreement may not exceed 10 years.
The City last approved a Tax Abatement Policy in August 2021 and was effective for two years from the date of adoption. Should any amendments to the policy be required during the two-year period, a super-majority vote of the City Council in favor of the amendments would be required. The policy must be renewed every two years by the City Council.
The proposed policy would be effective from August 9, 2023 to August 9, 2025 unless amended or repealed by at least a three-fourths vote of the City Council.
ISSUE:
N/A
FISCAL IMPACT:
The fiscal impact of the policy adoption indeterminate and is contingent upon the particulars of any future agreements adopted under the policy. There were no tax abatements approved in the program’s authorization period between 2021 to present.
Recommendation
RECOMMENDATION:
Staff recommends approval of the resolution and the renewal of the City’s Tax Abatement Policy.