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 abatements 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.
Local governments often use property tax abatements to attract new industry and commercial enterprises and to encourage the retention and development of existing businesses. Incorporated cities, counties and special districts are allowed to enter into tax abatement agreements. School districts cannot enter tax abatement agreements. While tax abatements are short-lived, they can have a significant future impact.
Recently enacted House Bill 3143, which went into effect Sept. 1, 2019, added additional public notice, hearing and reporting requirements for certain tax abatement agreements.
Below are three key highlights:
This item requires that:
If you have questions, call Frank Alvarez at 844-519-5672, ext. 6-9231.
Changes to this item require that:
This chapter, Tax Code Chapter 312, was extended until Sept. 1, 2029.
For additional information, contact the Data Analysis and Transparency Division via email or at 844-519-5672, ext. 6-9231.
This information should not be construed as, and is not a substitute for, legal advice.
Property owners and school districts are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.
In 2015, the Texas Legislature passed House Bill 855, which requires state agencies to publish a list of the three most commonly used Web browsers on their websites. The Texas Comptroller’s most commonly used Web browsers are Google Chrome, Microsoft Internet Explorer and Apple Safari.