HomeMy WebLinkAbout2021/02/23-Attachments-M&C 21-0110City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02/16/21 M&C FILE NUMBER: M&C 21-0110
LOG NAME: 19NEZTAXABATEMENTPOLICYRENEW2021
SUBJECT
(ALL) Adopt Resolution Stating the City of Fort Worth Elects to Remain Eligible to Participate in Tax Abatement Authorized by Chapter 312 of the
Texas Tax Code and Establish a Neighborhood Empowerment Zone Tax Abatement Policy
RECOMMENDATION:
It is recommended that the City Council adopt the Resolution:
1. Stating that the City elects to be eligible to participate in property tax abatement, pursuant to the Texas Property Redevelopment and Tax
Abatement Act, Chapter 312 of the Texas Property Tax Code, for areas located in Neighborhood Empowerment Zones; and
2. Establishing a Neighborhood Empowerment Zone Tax Abatement Policy Statement including guidelines and criteria governing property tax
abatements in a Neighborhood Empowerment Zone in the City of Fort Worth, Exhibit A to the resolution.
DISCUSSION:
Chapter 312 of the Texas Property Tax Code authorizes cities to designate Tax Abatement Reinvestment Zones and to enter into Tax Abatement
Agreements only after the City elects to become eligible to participate in tax abatement and adopts a policy that establishes guidelines and
criteria to govern its Tax Abatement Program. A policy adopted by a city is effective for two years from the date of adoption.
The City's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy expired on January 29, 2021. Staff is not recommending any changes
to the current NEZ Tax Abatement Policy. If the proposed resolution is approved, the new Policy will be effective February 2, 2021 through February
2, 2023 unless amended at an earlier date or repealed by a vote of at least three -fourths of the members of the City Council, thereby permitting the
City to enter into Tax Abatement Agreements, as authorized by the Texas Tax Code Chapter 312.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that approval of this Resolution will have no material effect on the Fiscal Year 2021 Budget. While no current year
impact is anticipated from this action, any effect on expenditures and revenues will be budgeted in future fiscal years and will be included in the
long term forecast.
Submitted for City Manager's Office bT. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316