SUBJECT: Public hearing regarding the renewal of the tax abatement ordinance.
RECOMMENDATION: (Summary) Public hearing regarding the renewal of the tax abatement ordinance.
SPECIFIC EXPLANATION:
Chapter 312 of the Texas Tax Code authorizes taxing units, including municipalities, to establish guidelines and criteria for property tax abatement and to enter into tax abatement agreements pursuant to the guidelines and criteria adopted by the taxing unit. Pursuant to this authority, the City has created the City of Houston Tax Abatement Program, which is codified in Article IV, Chapter 44 of the City Code. Section 312.002(c) of the Texas Tax Code provides that the tax abatement criteria and guidelines adopted by a taxing unit are effective for two years from the date adopted. The City’s current tax abatement guidelines and criteria were approved by City Council by Ordinance No. 2018-391 on May 16, 2018 and are set to expire May 16, 2020.
Pursuant to Texas Tax Code Section 312.002(c-1), before City Council can consider the adoption, amendment, repeal or reauthorization of the City’s tax abatement guidelines and criteria, City Council must hold a public hearing regarding the proposed adoption, amendment, repeal, or reauthorization at which members of the public are given the opportunity to be heard.
An ordinance adopting new tax abatement guidelines and criteria, to be codified in Article IV of Chapter 44 of the City Code, will be presented to City Council for consideration at a subsequent City Council meeting.