Both are similar to the Chapter 313 value request Taylor ISD received from Samsung in July for its $17 billion semiconductor fabrication facility that would employ 1,700 people. The agreement received support from the Texas Comptroller of Public Accounts on Aug. 20 and paved the way for Samsung to potentially receive $314 million in tax savings over a 15-year period, capping the estimated taxable value for TISD maintenance and operations ad valorem tax purposes at $80 million per year for 10 years from 2024-33. Samsung in application filings said without the appraised value limitation award, the company would likely locate the project in Arizona, New York or South Korea.
During the Sept. 9 meeting of Taylor City Council, a public hearing will be held for the establishment of Tax Abatement Reinvestment Zone No. 8 and Tax Increment Financing Reinvestment Zone No. 2, which would sit on 1,187.5 acres of property made up of 35 separate tracts of land south of Hwy. 79 and west of FM 973. The property is located within the extraterritorial jurisdiction of the city of Taylor. However, there is no entity name, such as a business or applicant, attached to the notices calling the hearings.
Chapter 311 agreements allow a jurisdiction such as a city or county to issue bonds or notes to finance the redevelopment of blighted, unproductive or undeveloped land with the intention for those funds to be paid by ad valorem property taxes. These types of agreements require tax rate increment commitments to pay for the improvement of an area, according to the Texas comptroller. There is one other TIRZ in the area that was established by the city of Taylor in 2005.
Similarly, Chapter 312 Tax Increment Financing Reinvestment Zone No. 2 would allow the city to abate ad valorem property taxes to property owners. This means the property owner could be rebated or exempt from paying a portion of their property taxes to the city.
A location for the facility has not been disclosed. However, in order for the proposed facility to receive tax incentives from all jurisdictions in the area, Chapter 311 and 312 agreements could be filed by the company.
The Taylor Economic Development Corp., which facilitates incentives and helps develop industrial property in the city of Taylor, did not reply to requests for comment.