The city participates in the county appraisal district. The
appraisal district shall perform all appraisal and assessment functions
required under the state property tax code. The appraisal district
shall perform all collection functions. Property [tax] administration
shall be in accordance with the state property tax code subject to
the local options permitted under that code.
(2001 Code, sec. 70-71)
All of the property described in the Texas Constitution, article
VIII, section 1-j, shall be fully taxable in the city.
(2001 Code, sec. 70-72)
In accordance with Tax Code section 11.252(f), the city will
tax leased motor vehicles otherwise exempted under Tax Code section
11.252(a). Accordingly, the exemption provided by section 11.252(a)
will not apply to the city.
(Ordinance 11-01 adopted 11/13/01)
Goods in transit, as defined by Texas Tax Code, section 11.253(a)(2),
as amended by Senate Bill 1 enacted by the 82nd Texas Legislature
in its first special session, shall remain subject to taxation by
the city.
(Ordinance 130-11 adopted 12/8/11)
The full or partial exemption from ad valorem taxes of certain
eligible property in a reinvestment zone designated by the City of
Columbus, Texas (sometimes referred to herein as “the city”)
to promote economic development.
The City of Columbus, Texas and any other tax jurisdiction
with any substantial parts of its area located in the city; and, that
levies ad valorem taxes upon and/or provides services to property
located and specified in the city; and that chooses to participate
in tax abatement agreements by or pursuant to these guidelines.
A contractual agreement between a property owner or lessee,
or both, and an affected jurisdiction for the purpose of tax abatement.
Buildings, structures and major earth structure improvements,
including fixed machinery and equipment, the primary purpose of which
is the hatching, incubation, nursing, maturing and/or processing to
marketable size aquatic culture in commercially marketable quantities
or the processing, refining, packaging, and distribution of food and/or
fiber products in commercially marketable quantities.
The assessed value of eligible property on January 1st, preceding
the execution of the agreement plus the agreed upon value of eligible
property improvements made after January 1st, but before the execution
of the agreement.
Improvements necessary for continued operations which do
not improve productivity or alter the process technology.
Buildings and structures, including machinery and equipment,
used or to be used primarily to receive, store, service or distribute
goods or materials owned by the facility, from which a majority of
revenues generated by activity at the facility are derived from outside
of Colorado County.
Buildings or structures, including fixed machinery and equipment,
used or to be used primarily in the generation or transmission of
electricity.
The addition of buildings, structures, machinery or equipment
for purposes of increasing production capacity.
Property improvements completed or in the process of construction
which together comprise an integral whole.
Buildings and structures, including machinery and equipment,
the primary purpose of which is or will be the manufacture of tangible
goods or materials or the processing of such goods or materials by
physical or chemical change.
The upgrading and/or replacement of existing facilities which
increases the productive input or output, updates the technology or
substantially lowers the unit cost of the operation. Modernization
may result from the construction, alteration or installation of buildings,
structures, fixed machinery or equipment. It shall not be for the
purpose of reconditioning, refurbishing or repairing.
A property previously undeveloped which is placed into service
by means other than or in conjunction with expansion or modernization.
A new office building.
Buildings and structures including fixed machinery and equipment
not elsewhere described, used or to be used for the production of
products or services which serve a market primarily outside the county
and result in the creation of new permanent jobs and create new wealth
in the county.
The number of years a property improvement is expected to
be in service in a facility.
Buildings and structures, including fixed machinery and equipment,
used or to be used to provide entertainment and/or tourism related
services, from which a majority of revenues generated by activity
at the facility are derived from outside Colorado County.
Buildings and structures, including fixed machinery and equipment,
used or to be used to provide a service, from which a majority of
revenues generated by activity at the facility are derived from outside
Colorado County.
Real property designation as a reinvestment zone under the
provisions of the Texas Tax Code, including any related, successor
or amended tax statutes or rules.
Buildings and structures, including machinery and equipment,
used or to be used primarily for research or experimentation to improve
or develop new tangible goods or materials or to improve or develop
the production processes thereto.
Any personal property not otherwise defined herein and which
is necessary for the proper operation of any type of facility.
(Ordinance 202-18 adopted 6/25/18)
(a)
Authorized facility.
A facility may be eligible for
abatement if it is an aquaculture/ agriculture facility, a distribution
center facility, an electric power generation facility, a manufacturing
facility, an office building, a regional entertainment/tourism facility,
a research facility, a regional service facility, a hotel/motel, or
other basic industry.
(b)
Creation of new value.
Abatement may only be granted
for the additional value of eligible property improvements made subsequent
to and specified in an abatement agreement between the city and the
property owner, lessee or lessor, subject to such limitations as the
guidelines and criteria may require.
(c)
New and existing facilities.
Abatement may be granted
for new facilities and improvements to existing facilities for purposes
of modernization or expansion.
(d)
Eligible property.
Abatement may be extended to the
value of buildings, structures, fixed machinery and equipment, site
improvements, plus that office space and related fixed improvements
necessary to the operation and administration of the facility.
(e)
Ineligible property.
The following types of property
shall be fully taxable and ineligible for abatement: land, inventories,
supplies, tools, vehicles, vessels, aircraft, housing or residential
property, deferred maintenance investments, property owned or used
by the state or its political subdivisions or by any organization
owned, operated or directed by a political subdivision of the state.
(f)
Owned/leased facility.
If a leased facility is granted
abatement, the agreement shall be executed with the lessor or lessee.
(g)
Value and term of abatement.
(1)
Abatement shall be granted effective with the January 1st valuation date immediately following the date of execution of the agreement or commence upon receipt of a certificate of occupancy, substantial completion or commercial operation date as outlined in the agreement. The value of new eligible properties shall be abated according to one of the following two tables, or subsection (k) below:
|
Tier 1: $250,000.00 to $999,999.99 Improvements
| |
|---|---|
|
Year 1
|
100% abatement
|
|
Year 2
|
80% abatement
|
|
Year 3
|
60% abatement
|
|
Year 4
|
40% abatement
|
|
Year 5
|
20% abatement
|
|
Tier 2: $1,000,000.00 + Improvements and Retention or Creation
of 10 Jobs
| |
|---|---|
|
Year 1
|
100% abatement
|
|
Year 2
|
100% abatement
|
|
Year 3
|
75% abatement
|
|
Year 4
|
50% abatement
|
|
Year 5
|
25% abatement
|
(2)
If a modernization project includes facility replacement, the abated
value shall be the value of the new unit(s) less the value of the
old unit(s).
(h)
Other economic qualifications.
In order to be eligible
for tax abatement the planned improvement must meet the following
requirements:
(1)
Tier 2 applications must retain not less than 10 employees or create
employment for not less than 10 persons associated with the production
of goods and services at the authorized facility on a full-time permanent
basis in the city. Each two or more part-time permanent employees
totaling an average of not less than 40 hours per week may be considered
as one full time permanent employee.
(2)
Must not solely or primarily have the effect of transferring employment
from one part of the county to another.
(i)
Taxability.
From the execution of the abatement contract
to the end of the agreement period, taxes shall be payable as follows:
(2)
The base year value of existing eligible property as determined each
year shall be fully taxable.
(j)
Continuation of operation after abatement period.
Applicants
must agree to remain in production for at least three (3) years after
the abatement is complete or the applicant shall reimburse the city
for 50% of the abated taxes during the applicable abatement period.
(k)
The city reserves the right to negotiate abatement agreements up
to ten (10) years and abatement percentages up to 100% in each abatement
tax year. The city also reserves the right to consider receiving payments
in lieu of tax (PILOTs).
(Ordinance 202-18 adopted 6/25/18)
(a)
Any present or potential owner of taxable property in the city may
request tax abatement by filing written request with the city, and
having it filed with the city secretary of the city.
(b)
The application shall consist of a completed application form accompanied
by:
(1)
A general description of the proposed use and the general nature
and extent of the modernization, expansion or new improvements to
be undertaken;
(2)
A description list of the improvements which will be a part of the
facility;
(3)
A map and property description;
(4)
A time schedule for undertaking and completing the planned improvements;
(5)
In the case of modernizing, a statement of the assessed value of
the facility, separately stated for real and personal property, shall
be given for the tax year immediately preceding the application; and
(6)
The application form may require such financial and other information
as deemed appropriate for evaluating the financial capacity of the
applicant and other factors of the application.
(c)
Upon receipt of a completed application, the city secretary receiving
such application shall notify in writing the presiding officer of
the city council. Before acting upon the application, the city receiving
such application shall through public hearings afford the applicant
an opportunity to show cause why the abatement should be granted.
(d)
Notice of the public hearing shall be clearly identified on an agenda of the city council receiving such application and shall be posted at least 10 days prior to the public hearing. At least seven (7) days prior to the public hearing the city must send written notice to the presiding officers of all taxing units with jurisdiction over the property for which an abatement is sought and must publish notice of the hearing time, place and subject in the local newspaper. At the hearing the city council shall evaluate the application against the criteria in section 11.02.032 and decide whether to designate the property for which an abatement is sought as a reinvestment zone. If the reinvestment zone is not designated, the application fails, although it may be amended and resubmitted. If the reinvestment zone is designated, the city council shall pass an order to that effect and may then arrange to consider for approval the tax abatement agreement between the applicant and the city at its next regularly scheduled meeting. At least seven (7) days prior to entering into a tax abatement agreement, city must give written notice of its intent to do so to the presiding officers of all taxing units with jurisdiction over the property for which an abatement is sought, along with a copy of the proposed tax abatement agreement. At the regularly scheduled meeting, the city council may finally vote by simple majority to enter into the tax abatement agreement or to decline. An approved tax abatement agreement may be executed in the same manner as other contracts made by the city.
(e)
If the city determines that the application should receive expedited consideration, then the mayor shall schedule an opportunity to obtain public input on the application at the next city council meeting. At least seven (7) days prior to the meeting, the city must send written notice to the presiding officers of all taxing units with jurisdiction over the property for which an abatement is sought and must publish notice of the hearing time, place and subject in the local newspaper. Also at this time, the city must give written notice of its intent to enter into a tax abatement agreement to the presiding officers of all taxing units with jurisdiction over the property for which the abatement is sought, along with a copy of the proposed tax abatement agreement. During the city council meeting, the city council shall evaluate the application against the criteria in section 11.02.032 and shall decide whether to designate the property for which the abatement is sought as a reinvestment zone. If the reinvestment zone is designated, the city council shall pass an order to that effect and may then immediately consider for approval the tax abatement agreement between the applicant and the city. After consideration, the city council may finally vote by simple majority to enter into the tax abatement, or the decline. An approved tax abatement agreement may be executed in the same manner as other contracts made by the city.
(f)
The city, in receiving the application, shall, not more than 60 days
after receipt of the application, approve or disapprove the application
for tax abatement. The mayor receiving such application shall notify
the applicant of approval or disapproval promptly thereafter.
(g)
Requests for variance from the provisions of section 11.02.032 may be made in written form to the presiding officer of the city council receiving the application. Such request shall include a complete description of the circumstances explaining why the applicant should be granted a variance. The approval process for a variance shall be identical to that for a standard application and may be supplemented by such additional requirements as may be deemed necessary by the city.
(Ordinance 202-18 adopted 6/25/18)
(a)
Should the city be able to show cause in the public hearing why the
granting of abatement will have substantial adverse effect on its
bonds, tax revenue, service capacity or the provision of service,
that showing shall be reason for the city receiving the application
to deny any granting of abatements.
(b)
No abatement agreement shall be authorized if it is determined that:
(1)
There would be a substantial adverse effect on the provision of a
government service or tax base of the city.
(2)
The applicant has insufficient financial capacity.
(3)
Planned or potential use of the property would constitute a hazard
to the public safety, health or morals.
(4)
Planned or potential use of the property violates other codes or
laws.
(c)
The city council acts only for the taxing entity of the city and
for no other taxing entity within the county. The city’s approval
or disapproval of an application has no effect on any other taxing
entity within the jurisdiction or their right to approve or disapprove
an application. Only the governing bodies of the affected jurisdictions
may grant tax abatements, and enter into tax abatement agreements
with applicants.
(Ordinance 202-18 adopted 6/25/18)
(a)
After approval for tax abatement, the city shall execute an agreement
with the applicant owner of the facility, and if applicable, the lessee
involved which shall include:
(1)
Estimated value to be abated and the base year value.
(2)
Percent of value to be abated each year as provided in section 11.02.032(g) and section 11.02.032(k).
(3)
The commencement date and the termination date of abatement.
(4)
The proposed use of the facility, nature of construction, time schedule for undertaking and completing the planned improvements, map, property description and improvements list as provided in application, section 11.02.033(b).
(6)
Amount of investment and average number of jobs involved for the
period of abatement.
(b)
Such agreement shall be executed within 60 days after the applicant
has forwarded all necessary information and documentation to the city
receiving the application, unless the governing taxing authority executing
the agreement waives the sixty (60) day requirement.
(Ordinance 202-18 adopted 6/25/18)
(a)
In the event that the facility is completed and begins producing
product or service, but subsequently discontinues producing product
or service for any reason excepting fire, explosion or other casualty
or accident or natural disaster for a period of more than one (1)
year during the abatement period, then the agreement shall terminate
and so shall the abatement of taxes for the calendar year during which
the facility no longer produces. The taxes otherwise abated for that
calendar year shall be paid to the affected jurisdiction within sixty
(60) days from the date of termination.
(b)
Should the city establishing a tax abatement agreement determine
that a company or individual is in default according to the terms
and conditions of its agreement, the city shall notify the company
or individual in writing at the address stated in the agreement, and
if such is not cured within sixty (60) days from the date of such
notice (“cure period”), then the agreement shall be terminated;
provided, however, if such failure cannot be cured within such sixty
(60) day period and the company or individual has commenced remedial
action to cure such failure (and continued to diligently and timely
pursue the completion of such remedial action), the company or individual
shall be entitled to a total of one hundred eighty (180) days after
receipt of notice within which to cure such default.
(c)
In the event that the company or individual:
(1)
Allows its ad valorem taxes owed the city or an affected jurisdiction
to become delinquent after all applicable notice and cure periods
and fails to timely and properly follow the legal procedures for their
protest and/or contest; or
(2)
Violates any of the terms and conditions of the abatement agreement
and fails to cure same during the cure period, the agreement may then
be terminated and all taxes previously abated by virtue of the agreement
will be recaptured and paid within sixty (60) days of the termination.
(Ordinance 202-18 adopted 6/25/18)
(a)
The chief appraiser of the city shall annually determine an assessment
of applicant’s real and personal property located in the city
reinvestment zone and comprising the facility. Each year the company
or individual receiving abatement shall furnish the assessor with
such information as may be necessary for abatement, including the
number of new or retained employees associated with the facility.
Once value has been established the chief appraiser shall notify the
affected jurisdictions which levies taxes on the amount of the assessment.
(b)
The agreement shall stipulate that employees and/or designated representatives
of the jurisdiction entering into a tax abatement agreement will have
access to the property during the term of the abatement to inspect
the facility to determine if the terms and conditions of the agreement
are being met. All inspections will be made only after the giving
of twenty-four (24) hours prior notice and will only be conducted
in such manner as to not unreasonably interfere with the construction
and/or operation of the facility. All inspections will be made with
one or more representatives of the company or individual and in accordance
with its safety standards.
(c)
Upon completion of construction, the jurisdiction establishing the
tax abatement agreement shall annually evaluate each facility and
report possible violations of the contract and/or agreement to city
council.
(d)
All proprietary information acquired by the city for purposes of
monitoring compliance with the terms and conditions of an abatement
agreement shall be considered confidential. As required by section
312.003 of the Texas Tax Code, information that is provided to the
city in connection with an application or a request for a tax abatement
that describes the specific processes or business activities to be
conducted or the equipment or other property to be located on the
property for which the abatement is sought is confidential and not
subject to public disclosure until the tax abatement is executed.
(Ordinance 202-18 adopted 6/25/18)
(a)
Abatement may be transferred and assigned by the holder to a new
owner of the same facility upon the approval by resolution of the
affected jurisdiction, subject to the financial capacity of the assignee
and provided that all conditions and obligations in the abatement
agreement are guaranteed by the execution of a new contractual agreement
with the affected jurisdiction.
(b)
The contractual agreement with the new owner shall not exceed the
termination date of the abatement agreement with the original owner.
(c)
No assignment or transfer shall be approved if the parties to the
existing agreement, are liable to the city for outstanding taxes or
other obligations.
(Ordinance 202-18 adopted 6/25/18)
(a)
These guidelines and criteria are effective upon the date of the
adoption and will remain in force for two (2) years, at which time
all tax abatement contracts created pursuant to its provisions will
be reviewed by city council to determine whether the goals have been
achieved. Based on that review, the guidelines and criteria may be
modified, renewed or eliminated, providing that such actions shall
not affect existing contracts.
(b)
This policy is mutually exclusive of any existing industrial district
contracts and owners of real property in areas deserving of specific
attention as agreed by city council.
(c)
Prior to the date for review, as defined above, these “guidelines
and criteria” may be modified by a two-thirds vote of city council,
as provided for under the laws of the state, providing that such actions
shall not affect existing contracts.
(Ordinance 202-18 adopted 6/25/18)
(a)
In the event that any section, clause, sentence, paragraph or any
part of these guidelines and criteria shall, for any reason be adjudged
by any court of competent jurisdiction to be invalid such invalidity
shall not affect, impair, or invalidate the remainder of these guidelines
and criteria.
(b)
If these guidelines and criteria have omitted any mandatory requirements
of the applicable tax abatement laws of the state, then such requirements
are hereby incorporated as a part of these guidelines and criteria.
(Ordinance 202-18 adopted 6/25/18)
The adoption of these guidelines and criteria by the city does
not:
(1)
Limit the discretion of the city council to decide whether to enter
into a specific agreement, which absolute right of discretion the
city council reserves unto itself, whether or not such discretion
may be deemed arbitrary, or without basis in fact;
(2)
Limit the discretion of city council to delegate to its employees
or assigns the authority to determine whether or not the city council
should consider a particular application or request for tax abatement;
or
(3)
Create any property, contract, or other legal rights in any person
or entity to have the city council consider or grant a specific application
or request for tax abatement.
(Ordinance 202-18 adopted 6/25/18)
