Tax incentives for biomedical research facilities in Texas 
                    Cities are eligible to adopt if the local sales tax rate would  
              not exceed two percent. 
           Only applies to cities that are located within a county of less  
              than 500,000 or the city has a population of less than  
              50,000 and is located within two or more counties, one of  
              which is Bexar, Dallas, El Paso, Harris, Hidalgo, Tarrant,  
              or Travis or the city has a population of less than 50,000  
              and is within the San Antonio or Dallas Rapid Transit  
              Authority territorial limits but has not elected to become  
              part of the transit authority. 
          Participation in a rapid transit authority will not invalidate a  
              city's ability to adopt a 4A tax if the city would not be  
              put about its statutory cap for the local sales tax rate. 
          Limited to approved "projects" under Section 2(11)(A) of the  
              Act.  The 77th Legislature amended the Act to include  
              research and development facilities in the definition of  
          Additional project definitions that might be helpful include  
              educational facilities and job training facilities (subject  
              to certain limitations). 
          Cities who are eligible to adopt the 4A tax are also eligible to  
              adopt the 4B tax.  Other cities eligibility is confined to  
              cities located in county with a population of 500,000 or  
              more or the city has a population of 400,00 or more and is  
              located in more than one county. 
          The new combined rate cannot exceed 8.25 percent. 
          The 77th Legislature permitted economic development corporations  
              to use the 4B tax for research and development facilities. 
          May also use 4B funds for job training facilities and job  
              training classes. 
          There is a public hearing requirement and a sixty day right to  
              petition to object to the project by election. 
         Tax Abatements 
          Local government entities that may enter into a tax abatement  
              agreement include incorporated cities, counties, and  
              special agreements.  Tax abatements by school districts are  
              governed by the Brimer Act (see below).   
          The lead party on the abatement agreement depends on the  
              location of the property subject to the tax abatement.   
              Cities are the lead party if the property is located within  
              the city limits.  Either the city or county may serve as  
              the lead party if the property is within the city's  
              extraterritorial jurisdiction.  The county serves as the  
              lead party is the property is located outside the city's  
              boundaries and extraterritorial jurisdiction. 
          Abatement agreements may not exceed 10 years. 
          Abatements must be condition of the owner making specific  
              improvements or repairs to the property.2(2)  Only improvements  
         (1)     1Texas Revised Civil Statutes Article 5190.6, Section 2(11) (A) (as amended by Texas House Bill  
         1592, 77th Legislature, Regular Session (2001)). 
         (2)     2Tax Code section 312.204(a) (as amended by Texas House Bills 1448 and 3001 and Texas senate  
         Bills 985 and 1710, 77th Legislature, Regular Session (2001)). 
              may be exempted, not the real property's current value. 
          Taxing units may enter into abatement agreements with the owner  
              of a leasehold interest in real property. 
          Tangible personal property may also be abated in all or part in  
              the agreement.  Personal property that was already on the  
              property before the abatement agreement may not be abated.   
              The agreement may not exceed 10 years. 
          Agreements can provide a declining annual percentage or abate  
              less than 100 percent yearly.            
          If a city adopts an agreement in its extra territorial  
              jurisdiction, the agreement takes effect upon the later  
              annexation of the property by the city. 
          Chapter 312 of the Tax Code provides six steps are necessary for  
              a taxing unit to enter into a tax abatement: 
              1. The taxing unit must adopt a resolution indicating  
              intent to participate in a tax abatement. 
              2. Taxing units must adopt abatement guidelines and  
              3. Taxing units must hold a public hearing, with notice,  
              and the lead party must designate an area as a  
              "reinvestment zone. 
              4. The lead taxing unit intending to grant an abatement  
              must deliver written notice to all other taxing units in  
              which the party is located.  The notice must include the  
              proposed agreement. 
              5. The taxing unit must adopt the abatement agreement by  
              majority vote of its governing body at its regularly  
              scheduled meeting. 
              6. Other taxing units may enter into abatement agreements  
              or may choose not to enter into them. 
         Brimer Act  
          Authorizes an owner of qualified property to apply to the  
              governing body of a school district in which the property  
              is located for a limitation on the appraised value for ad  
              valorem tax purposes of the person's qualified property. 
          School districts may designate a reinvestment zone when the area  
              is entirely within the school district's territory. 
          Tax increment financing may only be initiated by cities 
          Chapter 311 of the Tax Code governs 
          Under TIFs, a taxing unit can choose to dedicate all, a portion  
              of, or none of the revenue from a reinvestment zone  
              attributable to the increase of property values due to  
          TIFs may be initiated by property owners comprising of at least  
              50 percent of the appraised property value withing the  
              proposed zone or by the city council. 
          TIFs probably