Eagle Pass City Council seeks to grant Tax Abatements for Real Estate & Industrial Development
By: Jose G. Landa
Copyright 2013 Eagle Pass Business Journal, Inc.
The City of Eagle Pass, Texas City Council heard the second reading of an Ordinance and approved a resolution establishing tax abatements for real estate and industrial developments within city limits at its Special Meeting held on Tuesday, November 19, 2013, at the City Council Chambers at City Hall in Eagle Pass, Texas.
Citing the need to offer incentives to investors to build future real estate and industrial developments within the Eagle Pass city limits, the City Council approved a resolution establishing the City of Eagle Pass’ intent to offer tax abatements for real estate and industrial developments.
The City Council also heard the second reading of a proposed Ordinance adopting guidelines and criteria for granting tax abatements in a reinvestment zone in the City of Eagle Pass, Texas. Mayor Ramsey English Cantu stated that after the Ordinance is approved after its third reading at the next City Council meeting, the City Council will have to designate which areas of the city will be designated as a “reinvestment zone,” and that there may be several areas within the city limits. The public is invited to attend and provide their opinions regarding the proposed Ordinance establishing tax abatements at the third reading at the next City Council meeting.
Tax abatements are a reduction or exemption of taxes on real property for a certain length of time used for real estate and industrial development within the city limits. Tax abatements are used by governmental entities or districts as an incentive to potential investors to build real estate and industrial developments in their communities. Local municipalities, counties, and special districts are allowed to offer tax abatements while school districts are not allowed to do so. Local governments often use tax abatements to attract new commercial and industrial businesses as well as encourage existing businesses to expand their existing businesses and investments.
The Eagle Pass City Council is expected to approve the proposed Ordinance establishing guidelines and criteria for granting tax abatements in reinvestment zones within the city limits at their next meeting and third and final reading of the proposed Ordinance. Mayor Ramsey English Cantu stated that tax abatements are important to assist the City of Eagle Pass to attract investors as well as existing businesses to develop and/or expand commercial and industrial developments.
