Board of Directors WED Regular Meeting Agenda


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Meeting Date: 01/16/2019  

SUBJECT MATTER:
Receive, consider and act upon adoption of a resolution regarding guidelines and criteria for considering tax abatement agreements by The Woodlands Township;
FISCAL IMPACT:
Varies
BACKGROUND:
At the Board's December 5, 2018, the Township Board considered whether or not they wished to adopt a resolution regarding guidelines and criteria for considering tax abatement agreements.  The proposed tax abatement policy presented for Board consideration and adoption was based on and mirrored the criteria and guidelines of the tax abatement policy which Montgomery County had previously adopted  at their November 13, 2018 Commissioners' Court meeting. 

Some Board members expressed concerns as to whether the number of new jobs specified for the policy in the agenda packets had typos, as the number of jobs seemed low.  The draft policy in the agenda packet was verified to be correct and without typographical error.  The County is reportedly less interested in the sales tax revenue provided by the number of jobs than it is the property tax benefits provided by a signifigant capital investment.

Additionally, at that meeting, other Board members wanted to know whether, if in determining to adopt a Township tax abatement policy, they were constrained to adopt criteria and guidelines based on and consistent with Montgomery County's tax abatement policy or whether the Township could adopt their own under Chapter 312, Tax Code.

Section 7(s) Additional Specific Powers and Duties, of the Township's Enabling Legislation provides that the Township "may make, enter into, and enforce tax abatement agreements in the same manner as other taxing units under Chapter 312, Tax Code." However, it essentially restricts any such ad-valorem tax abatement to "one imposed by an abatement agreement with an owner of property already subject to a tax abatement agreement with [Montgomery County]."  Any Township tax  abatement agreement "may provide for the parties to be bound by the same terms as the county agreement for the remaining term of the county agreement and provide for the same share of the property exempted by the county agreement to be exempted from taxation by the district in each remaining year of the county agreement."
 
Traditionally, this language has been interpreted to mean that the Township's authority regarding adoption of tax abatement policies is either to adopt Montgomery County's Tax Abatement Policy's criteria and guidelines -- or forgo tax abatement.  That is, the Township isn't required to either adopt a tax abatement policy or enter into a tax abatement agreement but if it does, the Township's adopted policy would follow the County’s policy, as would any Township tax abatement agreement. 

The Prior Executive Summary is attached, should any of the Board meembers have further questions about the Township's proposed policy or its history.
 
 
RECOMMENDATION:
Board to determine action. 
Attachments
Resolution 001-19
December 5, 2018 BOD Executive Summary
Montgomery County Revised Guidelines with Redlining
Schedule_A_to Montgomery County Tax Abatement
Montgomery County Memo 2016 Changes
Montgomery County Executive Summary_Montgomery County Revisions


    

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