Type A and Type B Sales Tax
The Development Corporation Act of
1979 gives cities the ability to finance new and expanded business
enterprises in their local communities, and authorizes cities to adopt a
sales tax to fund the corporations and defined projects.
A "Type A" sales tax is primarily intended for manufacturing and
industrial development and may be used to fund land, buildings,
equipment, facilities expenditures, targeted infrastructure and
improvements for projects.
A "Type B" sales tax may be used for any project eligible under
Type A rules and several other project types including quality of life
Property Tax Abatement
Tax abatements are an economic
development tool available to cities, counties ans special districts to
attract new industries and to encourage the retention and development of
existing businesses through property tax exemptions or reductions.
Southeast Texas offers abatement opportunities to exempt part of the
increased value in real or personal property from taxation.
Chapter 380/381 Economic Development Agreements
Chapter 380 of the Local Government
Code authorizes municipalities to offer incentive designed to promote
economic development such as commercial and retail projects.
Specifically, it provides for offering loans and grants of city funds or
services at little or no cost to promote state and local economic
development and to stimulate business and commercial activity.
Chapter 381 of the Local Government Code allows counties to
provide incentives encouraging developers to build in their
jurisdictions. A county may administer and develop a program to make
loans and grants of public money to promote state or local economic
development, and to stimulate, encourage and develop business location
and commercial activity in the county.
Texas Economic Development Act
An appraised value limitation may be
extended to a taxpayer who agrees to build or install property and
create jobs in exchange for an eight-year limitation on the taxable
value of the property. The value limitation applies to the local school
district maintenance and oeprations tax portion of the property tax and a