HomeMy WebLinkAboutResolution 2003-038
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RESOLUTION NO. 2003-038
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A RESOLUTION ESTABLISHING MINIMUM CRITERIA AND GUIDELINES
FOR SALES TAX REBATE AGREEMENTS TO ENCOURAGE NEW AND
EXPANDED BUSINESSES ADJACENT TO SOUTH GRAPEVINE HIGHWAY
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WHEREAS, the North Richland Hills City Council desires to encourage the development and
redevelopment of the area adjacent to Grapevine Highway South of Loop 820;
and,
WHEREAS, Chapter 380, Texas Local Government Code provides a mechanism whereby
development can be encouraged through agreements providing for rebates of a
portion of sales tax generated by new and expanded businesses; and,
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WHEREAS, the City Council desires to establish minimum criteria and guidelines for sales
tax rebate agreements; NOW THEREFORE,
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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
HILLS, TEXAS:
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Section 1:
SALES TAX REBATE AGREEMENTS AUTHORIZED
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(a) Eligible business locations. Sales tax rebate agreements for new and expanded
businesses located adjacent to Grapevine Highway South of Loop 820, or within 500 feet ofthe
Southwest comer of the intersection of Grapevine Highway and Loop 820, will be considered
by the City Council.
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(b) Minimum eligible sales amount. New businesses which reasonably anticipate
generating a minimum of$2,500,000 in new sales subject to city sales tax or existing businesses
which reasonably anticipate increasing their volume of sales subject to city sales tax by a
minimum of $2,500,000 shall be eligible for consideration for a sales tax rebate agreement.
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(c) Competition. No business shall be eligible for a sales tax rebate agreement if it has a
competitor not eligible for such agreement located within one mile of such business.
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(d) No other incentives. No business shall be eligible for the sales tax rebate incentive if
it is the beneficiary of a city tax abatement agreement or is located on property which is the
subject of such an abatement, whether such business receives such abatement or not.
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(e) Citv Ordinances. No business shall be eligible for a rebate if it obtains any
variances to any zoning, sign or other city ordinances and is in full compliance with all
Resolution No. 2003-038
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applicable city codes.
Section 2:
REBATE AGREEMENT REOUIREMENTS
(a) Tax returns. Each agreement shall include a requirement for the applicant to furnish
copies of sales tax returns filed with the state, including, in the case of existing businesses
which seek a rebate on expanded sales, returns for the two years preceding the effective date
of the agreement.
(b) Term and timing. No agreement shall be effective for more than five (5) years.
Agreements shall provide for initial payments to be calculated after twelve (12) continuous
months from the effective date of the contract and subsequent payments to be calculated on
each successive twelve (12) months thereafter.
(c) Amount. No agreement shall provide for a rebate of more than twenty percent of the
annual amount of the one percent (1 %) general municipal tax on new or expanded sales.
Section 3:
ADMINISTRATION AND LIMITATIONS ON PAYMENT
(a) Time of payments. Payments shall be made within thirty (30) days after satisfactory
proof of payment by the business of twelve continuous months of sales tax payments.
(b) Shortages. If the amount of new or expanded sales subject to the one percent (1 %)
general municipal sales tax is less than $2,500,000 for any of the twelve month periods defined
by Section 2(b) hereof, there shall be no rebate paid for such period.
AND IT IS SO RESOLVED.
PASSED on the 24th day of March, 2003.
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CITY OF NORTH RICHLAND HILLS
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Oscar Trevino, Mayor
By:
Resolution No. 2003-038
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S TO FORM AND LEGALITY:
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APPROVED AS TO CONTENT:
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Department Head
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Resolution No. 2003-038
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