Property Tax Incentives
Our team has successfully obtained a number of local property tax abatements and Chapter 313 school value limitations for new industrial/manufacturing developments. We are familiar with the entire process, including site selection, negotiations with the taxing entities, and maintenance of existing agreements. Through our efforts we have reduced property tax liabilities for our qualified clients. Our services include:
- Chapter 313 School Value Limitations
- Local Property Tax Abatements
- Industrial District Agreements
- Pollution Control Property Exemptions
- Freeport Goods in Transit Exemptions
- Interstate Commerce Exemptions
- Foreign Trade Zone Exemptions
- Payment in lieu of Tax Agreements (“PILOT”)
Chapter 312 of the Texas Property Tax Code allows for the creation of tax abatement agreements between the taxpayer and local taxing unit exempting all or part of the value increase from real property and/or tangible personal property from taxation for up to 10 years. Popp Hutcheson’s experienced professionals work with local taxing unit representatives from the beginning of the application process through the execution of the abatement agreements to ensure favorable results.
In 2001, the 77th Texas Legislature enacted House Bill 1200 creating Tax Code Chapter 313, the Texas Economic Development Act. Under Chapter 313, a qualified applicant may apply to a school district for a limit on the appraised value of their new development project. Qualified applicants and projects taking advantage of these provisions can sharply reduce their prospective property taxes.
Popp Hutcheson professionals efficiently compile all information required for various tax incentive applications. PH has an extensive background in preparing and submitting incentive applications for complex projects throughout Texas
Forecast appraised value
Using cost and operations data, we estimate the appraised value of the project through all stages of construction and into the future. This forecast assists Chapter 313 applicants decide the optimum timing for executing the agreement in order to yield maximum property tax savings.
Pollution control exemptions
Our consultants and engineers analyze cost and process data to estimate the amount of property tax relief the TCEQ will grant to any Chapter 313 applicant. This information is critical in negotiating the terms of the agreement. Maximizing the TCEQ exemption is an important tool in reducing post-Chapter 313 property tax valuations.
Active as well as new tax incentives require additional annual reporting to various taxing jurisdictions. We work with our clients to satisfy all necessary compliance reporting and filings to maintain current and upcoming incentive agreements.
Implement post-Chapter 313 strategies
Minimizing the appraised value during the term of a Chapter 313 agreement is essential to managing property taxes after the limitation on appraised value expires. PH analyzes production and external market data to quantify all forms of obsolescence the appraisal district should consider, providing a framework for proper and fair valuation going forward.
Property Types Represented
- Oil Refineries
- Chemical Plants
- Natural Gas Liquids Processing Plants
- Wind Power Generation
- General Manufacturing