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Crockett reauthorizes and adopts joint tax-abatement guidelines with Houston County

Crockett City Council · August 7, 2023
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Summary

After a public hearing, the council voted to adopt updated tax‑abatement guidelines (extending potential abatements up to 10 years for high‑scoring projects) and approved a resolution electing the city to be eligible to participate in abatement incentives; joint guidelines with Houston County were also adopted.

Council opened a public hearing required by state law to reauthorize tax‑abatement guidelines that had last been renewed in 2016 and to take comment on proposed changes. Staff (Speaker 5) described the guidelines as point‑based: points are awarded for newly created full‑time positions, capital investment, and payroll increments; manufacturing and transportation receive higher point weights.

"The changes that were made were moving this from a 5 year up to a 10 year," Speaker 5 said, explaining that projects scoring below a threshold would remain eligible for up to five years while higher‑scoring projects could qualify for abatements extending into a 10‑year schedule.

Members of the public voiced support for bringing jobs to town and urged the council to pursue incentives; one commenter raised concerns about the city's infrastructure and readiness to host large employers. After closing the hearing, Speaker 3 moved to approve a resolution electing the city to be eligible to participate in tax abatement; Speaker 4 seconded and the motion carried. The council then moved to adopt joint tax‑abatement guidelines and criteria with Houston County; that motion also carried.

The adopted guidelines are intended to give the city and county a consistent incentive framework to use when negotiating future agreements with prospective employers. Staff said the guidelines will allow the city to act more quickly when negotiating incentives with businesses.