The City of Lubbock must readopt the criteria and guidelines for Commercial Tax Abatement agreements, as required by Chapter 312 of the Tax Code, in order to continue participating in tax abatement. The guidelines proposed are the same as the prior adopted guidelines. Below is a summary of the Proposed Commercial Tax Abatement Guidelines: • General Purpose: To promote high quality commercial development and improved quality of life in designated enterprise zones. • Maximum Term: 5 Years • Eligible Property: Improvements to Real Property and Tangible Personal Property • Non-Eligible Property: Real Property; inventories or supplies; tools; furnishings and other forms of movable personal property; vehicles; aircraft; housing; boats; property owned by the State of Texas or any State agency; and, property owned or leased by a member of the affected Jurisdiction that did not have an active tax abatement in place before they became a member of the governing body or commission. • Types of Companies: Retail, Service and Office • Location: Allowed only in the following designated enterprise zone areas:
EZ Block Groups:
Census Tract 2.01 Block Groups 1 and 2
Census Tract 2.02 Block Group 1
Census Tract 3.01 Block Groups 1, 2, and 3
Census Tract 3.02 Block Groups 1, 2, 4, and 5
Census Tract 6.07 Block Groups 1 and 2
Census Tract 9.00 Block Groups 1 and 4
Census Tract 10.00 Block Groups 1, 2, and 3
Census Tract 12.00 Block Groups 2 and 3
Census Tract 13.00 Block Groups 1, 2, and 3
Census Tract 14.00 Block Groups 1, 2, 3, 4, and 5
Census Tract 23.00 Block Groups 1 and 2
Census Tract 24.00 Block Groups 1, 3, 4, and 5
• Other Eligibility Requirements: To qualify for commercial tax abatement, a company must modernize or expand an existing facility or construct a new facility and must clearly add to the Lubbock economic base. The company must show that if the company is qualifying on the jobs requirement, that the jobs being proposed will not simply displace other similar jobs in the community. • Investment/Job Criteria:
(a) $100,000 investment,
or
(b) Ten new permanent jobs, and at least 30% of the business’ new employees in the zone are residents of any zone within the governing body or bodies’ jurisdiction.
• Qualifiers: Approving the guidelines does not obligate the jurisdiction to provide tax abatement to any applicant. • Variances: The City Council can vary any of the requirements not required by statute, with a three-quarter vote. If approved, the effective date of Commercial Tax Abatement guidelines will be February 22, 2022. |