Public Information Office 2300 Bloomdale Rd. Suite 4192 McKinney, Texas 75071 www.collincountytx.gov

FOR IMMEDIATE RELEASE: January 17, 2011

Collin County Commissioners Court Approves New Economic Incentives

(MCKINNEY, Texas) –The Collin County Commissioners Court has approved the following three new economic incentive programs as part of their ongoing commitment to the promotion of quality commercial development that improves the quality of life for county residents:

• 50/3 Tax Incentive Plan
  The County’s Economic Development 50/3 Plan provides qualifying new businesses or new additional locations of existing businesses grants equal to 50% of the businesses’ county ad valorem taxes for up to three years.  The 50/3 Plan was adopted pursuant to Chapter 381 of the Texas Local Government Code, which allows a county to grant or loan public monies to promote economic development and encourage new local commercial activity, resulting in more jobs and increased real and business property values.

• Tax Abatement Policy
  The updated County Tax Abatement Policy encourages investment in property improvements within county and municipal reinvestment zones to promote increased property values and jobs expansion and retention.  A tax abatement is an 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. The tax abatement policy was adopted pursuant to Chapter 212 of the Texas Tax Code.

• Tax Increment Reinvestment Zones
  The adopted Tax Increment Reinvestment Zone (TIRZ) program allows for county/municipality partnerships to designate the collection and use of locally generated property taxes within specifically designated areas.  Authorized by Texas Tax Code Chapter 311, a local government may create a TIRZ within which they may publicly finance needed structural improvements and enhanced infrastructure.  A TIRZ can be initiated by petition of the af­fected property owners, or a municipality or county can ini­tiate one without the need for a petition. No more than 10 percent of a TIRZ may be used for residential purposes (with some exceptions), and a new or expanded existing TIRZ may not exceed 15 percent of the total appraised property value within a county, city or school district.

“The 50/3 plan is a unique tax incentive program for new businesses – and those adding new locations – in our county that few, if any, other counties offer right now,” said Collin County Judge Keith Self.  “Added to our updated tax abatement and TIRZ policies, it’s clear we’re doing everything we can to help bring more jobs to our community.”

Precinct 1 Commissioner Matt Shaheen stated the tax breaks are another way for Collin County to stand out as a great place to build a business:  “These tax breaks, coupled with a strong workforce and solid infrastructure, means the opportunities for the county are endless.”

“While large corporations have had the opportunity to request tax abatements for years, small businesses have often felt left out in the cold,” said Commissioner Cheryl Williams of Precinct 2. “Our new 50/3 program gives small businesses an opportunity to have the same benefits as larger businesses. Incentivizing small businesses to locate in Collin County should increase employment opportunities for our citizens.”  Williams supports the 50/3 Plan because it shows the county is open to and wants to provide abatements for businesses who bring in as few as five jobs as well as for those who bring much more.

Precinct 3 Commissioner Joe Jaynes said that, for the first time, the program includes unincorporated areas of the county as well as the cities: “The 50/3 Plan shows that all of Collin County is open for business.”

 “The 50/3 Plan and TIRZ policy are in line with our recently updated tax abatement policy for large development projects,” said Commissioner Duncan Webb of Precinct 4. “And the cities’ input is vital to make sure we’re all on the same page as to how the county should develop.” Webb contends that, by including city support and input, programs expand partnerships already in place with the cities.

According to a county review of business tax rolls, as many as 800 businesses could qualify under the 50/3 Plan’s terms.  The Collin Central Appraisal District records reflect that Collin County is an active participant in  93 tax abatements and 6 TIRZs located in cities throughout the County.

More information about Collin County’s economic incentive programs is available on the county web site at http://www.collincountytx.gov/budget_director/incentives/economic_incentives.jsp

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