Local Property Tax Information
Economic Development Handbook (PDF posted by Office of Attorney General, 2013)
Statutes Governing Reinvestment Zones and Tax Abatements
Need Help?For questions, contact the Comptroller's Economic Development & Analysis Division at econ.dev@cpa.state.tx.us or call 1-800-531-5441 ext. 3-4679 (in Austin: 512-463-4679).
Chapter 312 Frequently Asked Questions
- Can a taxing unit amend the guidelines and criteria for a reinvestment zone?
- How long does an abatement agreement last?
- What portion of the property taxes is exempt from taxation in an abatement agreement?
- Can abatement agreement conditions be revised during the life of the abatement agreement?
- What information is required to be reported to the Comptroller’s office?
1. Can a taxing unit amend the guidelines and criteria for a reinvestment zone?
Yes; the guidelines and criteria are effective for two years from the date adopted. During that period, the guidelines and criteria may be amended or repealed only by a vote of three-fourths of the members of the governing body.
2. How long does an abatement agreement last?
An abatement agreement can exempt from taxation a portion of the value of the real property or of tangible personal property located on the real property or both for a period not to exceed 10 years.
3. What portion of the property taxes is exempt from taxation in an abatement agreement?
An abatement agreement may exempt from taxation all or part of the increase in the value of the real property for each year covered by the agreement. The abatement agreement must be conditioned on the property owner making specific improvements or repairs to the property and only the increase in the value of the property may be exempted.
4. Can abatement agreement conditions be revised during the life of the abatement agreement?
At any time before the expiration of an abatement agreement the agreement can be modified by the parties to the agreement to include new provisions or delete existing provisions. The procedures for making modifications to an agreement are the same procedures used when the agreement was approved and executed.
5. What information is required to be reported to the Comptroller’s office?
According to Texas Tax Code, Section 312.005 certain information is required to be sent to the Comptroller's office. For more information on what is to be reported please visit our reporting forms section.