Local governments can offer additional ad valorem property tax
abatements to attract cleanup and redevelopment of #brownfields.
Senate Bill 1596 and
House Bill 1239 of the 75th Texas Legislative Session added Section 312.211 to the
Texas Tax Code, allowing municipal or county taxing authorities to grant
property-tax relief for the development or redevelopment of certain
brownfields in a reinvestment zone that have been cleaned up through the
VCP.
To be eligible, the real property must:
- be located in a reinvestment zone created under Tax Code 311;
- not be in an improvement project financed by tax increment bonds; and
- have received a voluntary-cleanup certificate of completion from the VCP.
The governing body must enter into a tax-abatement agreement with the owner of the brownfield property as set forth in
Tax Code 312.002.
The governing body is allowed to exempt from taxation:
- up to 100 percent of the value of the property in the first year covered by the agreement;
- up to 75 percent in the second year;
- up to 50 percent in the third year; and
- up to 25 percent in the fourth year.
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