A Foreign Trade Zone (FTZ) is a federal program that allows federal taxes and fees to be lowered, eliminated or exempt from payment. The Foreign Trade Zones Board and its staff in Washington, D.C. govern the U.S. FTZ program.
Dixie Cullen Interests, Inc. plans to submit a FTZ application to the Federal Trade Zone Board for its facility located at 8501 East Freeway, Houston, TX 77029 in District B. Dixie Cullen Interests, Inc. is pursuing this FTZ designation in order to receive exemptions from various import duties, as well as other benefits. Under federal law, the proposed designation exempts property located within a FTZ from ad valorem taxation, and applicants are required to obtain letters of “non opposition” from affected taxing jurisdictions. Dixie Cullen Interests, Inc. has requested that the City of Houston issue such a letter to the Port of Houston Authority to be forwarded to the Federal Foreign Trade Zone Board.
In order to comply with Dixie Cullen Interests, Inc.’s request, the City has required that Dixie Cullen Interests, Inc. enter into an agreement to provide and ensure that the City of Houston will receive the local ad valorem taxes to which it would have been entitled had Dixie Cullen Interests, Inc. not pursued the FTZ designation.
The Planning and Development Department recommends that City Council approve a letter of non-opposition for Dixie Cullen Interests, Inc.
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Patrick Walsh, P.E.
Director
Planning and Development Department
cc: Andy Icken