The Courier of Montgomery County reports that the tax abatement policy of Conroe has been renewed, but councilmembers half-heartedly supported it as a way to recruit new business to the area.
The move follows Conroe redesignating its technology and industrial parks as tax reinvestment zones. Required every five years, the redesignation lets the city offer tax abatements to companies who express an interest in coming to the city for development in those areas.
Between the taxpayer and the taxing entity a tax abatement is a local agreement that exempts all or part of the increase in the value of the real property and tangible personal property from taxation for a span not to exceed ten years.
Available only for commercial development and to incentivize large companies, tax abatements are used to foster development in the city by not paying for a certain number of years.
Property tax, of course, provides a continual input of funds to the city.
Councilmember Porter expressed a lack of support for tax abatements. She asked, “Why are we giving them tax abatements” if the companies “come here because they want to come here.”
Deputy Director for Economic Development Laura Lea Palmer said that while tax abatements are not in use in Conroe, across the U.S. it’s common. She considered an abatement policy “a needed tool in our toolbox.”
Not having a policy, according to Councilmember and Chairman of the Conroe Industrial Development Corporation, David Hairel, may “discourage” companies from coming to Conroe.
