Chapter 312 Agreements

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Summary

Under Chapter 312 of the Texas Tax Code, a tax abatement agreement can be issued by a city, county or special district.

Tax Abatement Agreements

This abatement is a local agreement between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years. School districts may not enter into abatement agreements. 

Each taxing unit that wants to consider tax abatement proposals must designate a reinvestment zone or an enterprise zone. The full statutes governing tax abatements are located in Texas Tax Code Chapter 312.