Committee explores Chapter 380 tax‑deferral option with developer proposal; seeks more detail

Members of the Lago Vista Economic Development Advisory Committee discussed a proposed agreement brought forward by Trophy Signature Homes that the meeting record referred to as a "3 80 deal," a local tax‑deferral arrangement that requires paperwork with the state comptroller.

City staff explained the mechanism: builders document material costs to the state comptroller and defer sales tax at purchase; the deferred tax revenue can then be split with the city under a contract. The proposal discussed at the meeting would use a 50/50 split of the deferred sales tax receipts between the builder and the city.

Committee members noted the program usually makes sense for larger developments because of the administrative paperwork required; the city staff said the builder handles most of the paperwork but that details remain to be clarified. The committee also discussed whether an individual builder would be able to use the program for small infill projects and whether the revenue could be targeted to specific funds.

City staff said revenue from a 380 agreement would be deposited into the general fund, not a dedicated EDC account, but the city could choose how to allocate it thereafter. Members asked staff to invite Trophy Signature Homes to present additional details at a future meeting; the committee did not take formal action on the proposal at this meeting.

Committee members agreed to do further homework and requested a presentation by the developer to explain project scale, expected volume and the administrative burden on both the builder and the city.