Council declares intent to participate in Texas tax abatement program for Heart of the Falls revitalization zone

Wichita Falls — The City Council on May 20 opened a public hearing and adopted a resolution declaring the city’s eligibility and intent to participate in the Texas tax abatement program for the Heart of the Falls neighborhood revitalization area and to adopt guidelines and criteria for abatements there.

City staff described the step as one of three required by the Texas tax code before local governments may offer tax abatements: declare intent to participate, designate a geographic area, and adopt program guidelines. Staff said the guidelines for the Heart of the Falls effort differ from the city’s existing abatements because they are designed to include residential uses in addition to commercial and industrial incentives.

"Before we can participate, we have to do 3 things. First, we have to declare our intent to participate in the Texas abatement program. Secondly, we have to designate the geographic area. And third, we have to adopt guidelines for that abatement program," a city planner said during the hearing.

Councilors asked whether abatements could be coupled with other programs, such as first-time homebuyer incentives; staff said abatements can be transferable to a new homeowner and that both residential and commercial uses may qualify under the planned guidelines. Staff said the reinvestment zone, once adopted, will have a 10-year lifetime; individual abatements granted during the zone’s life may continue for their allowable term even after the zone has expired.

Following the hearing, the council approved the resolution by voice vote to begin the statutory notification process with other taxing jurisdictions and to proceed toward creation of a reinvestment zone and final guidelines.