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Galveston County Property Tax Abatement:
Galveston County requires municipal participation before consideration of a tax abatement proposal. Projects located in an unincorporated area would require special consideration from the county.
As of January 2010, Galveston County guidelines for consideration of a project's abatement application are as follows:
* Value-added improvements to real property may qualify for tax abatement in Galveston County;
* No tax abatement will exceed the maximum allowed by state law, presently 100% for 10 years, although of late Galveston County has been limiting abatements to 75% of value and five years, construction inclusive, with an alternate two year extension at the option of the Commissioners' Court.
Facilities that Qualify for Abatement: Manufacturing operations wholesale distribution projects, major office operations, new facilities, and in some cases recreational uses that serve a regional population. |
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Abatable Improvements: Taxes on new buildings, equipment used in the production or manufacturing process, and build-out of an existing facility that has a productive life of ten years or more.
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Non-Abatable Improvements: Taxes on land, existing buildings, inventory deferred maintenance of an existing building, and rolling stock.
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Qualifications for Tax Abatement: In order to qualify for abatement consideration, the project must be expected to have an increase appraised ad valorem value of the minimum amounts set forth by each of the following taxing entities:
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Texas City |
$ 5,000,000 |
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Galveston County |
$ 3,000,000 |
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Hitchcock |
$ 2,000,000 |
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La Marque |
$ 2,000,000 |
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League City |
$ 500,000 |
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Galveston |
$ 500,000 |
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Friendswood |
$ 500,000 |
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Dickinson |
$ 500,000 |
Qualificatons for Tax Abatement of Tourist Related Facilities: Tourism projects located in an area of concentration of Tourist Related Facilities must be expected to have a minimum increase appraised ad valorem value of $2,000,000. |
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