Waco council reauthorizes residential and business tax‑abatement guidelines

The Waco City Council on Dec. 2 readopted the city's residential and business tax‑abatement guidelines required under Texas Tax Code Chapter 312.

Director Price opened the public hearing for the residential guidelines, saying the meeting was being held under Texas Tax Code Section 312.002 and that staff proposed readopting the existing policy to support development in the city core. She told the council the current residential guidelines expire Dec. 17, 2025 and the readoption would make them effective through Dec. 17, 2027.

At the business tax‑abatement hearing, Assistant Director Jeremy Pesina told the council staff recommended readopting the City of Waco business tax‑abatement guidelines for a two‑year period effective Jan. 1, 2026 through Dec. 31, 2027 and confirmed there were no amendments to the policy packet. "No amendments," Pesina said when asked by council whether changes had been made.

Both matters were opened for public comment; no speakers came forward at either hearing. Each item was then moved, seconded and approved by roll‑call vote.

Why it matters: Chapter 312 of the Texas Tax Code requires a municipality to adopt guidelines before it may enter into tax‑abatement agreements. Readopting the guidelines preserves the city's ability to negotiate abatement agreements under the existing criteria and timelines.

What comes next: With readoption, the residential guidelines will run through Dec. 17, 2027 and the business guidelines will be effective Jan. 1, 2026 through Dec. 31, 2027. Any abatement agreements must meet the adopted guidelines before the city can enter into them.

Provenance: Topic introduced by Director Price and hearing material (SEG 177–232); business guidelines presented by Jeremy Pesina (SEG 233–301).