Tax Abatements

STATE REQUIREMENTS:

Municipality sets terms of abatement by agreement; other taxing entities may choose to participate at identical terms.

Maximum length of abatement is 10 years.
Maximum amount of abatement in 100 percent.
Base or existing value may not be abated; no abatement of inventories, supplies, etc.

TARRANT COUNTY POLICY:

Minimum investment - New business: $5,000,000 Expansion: $3,000,000.
Applicable to new construction and expansions/modernization.
Abatement on eligible real and fixed personal property.
Minimum job requirements include 25 jobs for new business and sustained employment level for existing business expansions.
No abatement for companies moving within the County; considered if agreeable to both cities.
Additional evaluation criteria: environmental impacts (air quality); diversity of employment base and commitment to a diversified workforce; minimum of 25 percent of new jobs created filled by Tarrant County residents; use of minimum 15 percent DBEs and 25 percent Tarrant County contractors in construction/suppliers/service contracts; provision of health care benefits.
County approval of a tax abatement applies to both County and Hospital District ad valorem taxes.

GENERAL PROCEDURES:

Company begins negotiations with City; City makes County aware of request and invites County comments during negotiations.
Company makes application to County for participation in abatement.
City formally advises County and other taxing entities of abatement agreement.
Once approved by City, County action to participate must take place with 90 days of execution of the municipal abatement agreement.

Downloads

Tax Abatement Policy (Adobe PDF) - 31KB