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 Houston
 Code of Ordinances
 Chapter 44. TAXATION
 Article IV. TAX ABATEMENT

  § 44-128. Agreement for economic development abatement.  

Latest version.

  • Upon designation of a reinvestment zone, the city may enter into an agreement that 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 this article;

    (3)

    The commencement date and the termination date of abatement;

    (4)

    The proposed use of the facility, nature of construction, time schedule, map, property description and improvement list as provided in this article;

    (5)

    Contractual obligations regarding the event of default, violation of terms or conditions, delinquent taxes, recapture of all previously abated taxes, administration, and assignment as provided in this article and other provisions that may be required for uniformity or by state law;

    (6)

    Amount of investment and total permanent employees to be retained or created and total full-time equivalent jobs to be retained or created;

    (7)

    A requirement that the abatement recipient, on or before not later than February 1 of each year the tax abatement agreement is in effect, provide the director an affidavit that includes a delineation of the number of permanent employees, contract employees and part-time employees of the abatement recipient as of the immediately preceding December 1, who report to work in the reinvestment zone at each site covered by the agreement;

    (8)

    A requirement that the abatement recipient annually file the appropriate form with the appropriate county appraisal district to qualify for the abatement;

    (9)

    A provision that contract employees and part-time employees may be used to comply with the abatement recipient's contractual obligation to create/retain jobs on a full-time equivalency basis for any number of jobs; provided that full-time equivalent jobs shall only be used to satisfy the abatement recipient's contractual obligation if the abatement recipient maintains a minimum of 25 permanent employees who work on the project within the reinvestment zone;

    (10)

    A requirement that property in a reinvestment zone that is owned or leased at any time during the term of an abatement agreement by a member of the city council or by a member of the city planning commission is ineligible for and excluded from tax abatement;

    (11)

    A requirement that the abatement recipient's chief financial officer, or the officer's designee, on or before January 1 of each year that the agreement is in effect, provide the director an affidavit that the recipient is and has been in compliance in the prior year with all agreement provisions;

    (12)

    A requirement that the abatement recipient's chief financial officer, or the officer's designee, who cannot make the affidavit required by item (11) of this section on any January 1 shall provide the director with a written statement identifying any provision of the agreement with which the abatement recipient is or has not been in full compliance;

    (13)

    A provision that failure by the abatement recipient's chief financial officer, or the officer's designee, to timely provide the director with either the affidavit required by item (11) of this section or the statement required by item (12) of this section will result in automatic default under the agreement for which no notice of default or opportunity to cure shall be required; and

    (14)

    A provision that the city may amend the agreement in lieu of termination pursuant to section 44-134(d) of this Code.

(Ord. No. 2018-391 , § 2(Exh. A), 5-16-2018)