San Patricio County offers Tax Abatements to attract long-term investment and to establish new jobs in the area in order to enhance the economic base of area taxing entities. San Patricio County stays competitive with other counties across the nation currently offering tax inducements to attract new plant and modernization projects. The county has created these tax abatements to ensure a local tax climate and start-up taxes remain low and attractive to plant installations and expansions.
Tax abatements in San Patricio County are authorized by the Property Redevelopment and Tax Abatement Act, Chapter 312 of the Texas Tax Code, enabling cities and school district to provide property tax abatement for limited periods of time as an inducement for the development or redevelopment of a property.
Abatements will be granted in order to fully or partially exempt companies from ad valorem taxes of certain added value to real and personal property in zones designed for economic development purposes. Abatements are available to Basic Industrial, Manufacturing, or Service Facilities. Abatement may be granted for new facilities and improvements to existing facilities for the purpose of Modernization or Expansion.
In order to apply for a tax abatement with San Patricio County, a written application must be filed with 1) the City Manager of the City, if such property is within the city limits, or 2) the County Judge of San Patricio County, if such property is in the unincorporated areas of San Patricio County. The abatement will then go through a Public Hearing and Approval phase, where the request for abatement will be vetted and discussed.
Temporary property tax abatement shall be authorized for the development of a Facility or the addition of tangible personal property that meets either a qualification criteria of capital investment or a qualification criteria based upon a combinations of the number of new jobs created plus salary.
The capital investment qualification is as follows:
The combination of new jobs and salary criteria is as follows:
Upon compliance with the above criteria, the percentage of tax abated shall be in accordance with the following schedule: