design elements - San Jacinto Texas Historic District

Tools to consider for the San Jacinto Texas Historic District include:
4A Sales Tax: cities located in a county with a population of less than
500,000 may impose the 4A sales tax if the new combined local sales tax
rate would not exceed 2 percent. Some cities located in Harris County may
also use 4A for economic development eff orts, but eligibility varies from
county to county. For information on eligible cities call the Comptroller’s
Local Government Assistance section (800.531.5441 ext 3-4679.)
4B Sales Tax: 4B sales tax requires an election and can be created in ¼
cent increments up to ½ cent. This tool can be used to leverage municipal
bond fi nancing. Cities are eligible to adopt the 4B sales tax if the combined
local sales tax rate would not exceed 2 percent.
Neighborhood Empowerment Zone: this overlay zone allows cities to
provide incentives for property improvements aligned with the objectives
of an approved Plan. This 10-year zone can be structured to reimburse
property owners through revenues generated by sales, real property, and
personal property tax revenues. For example if a business implements a
$100,000 façade/parking lot improvement, the city can reimburse all or a
part of that investment for a period of 10 years from taxes generated from
that property.
Tax Increment Reinvestment Zone: this designation provides incentives
to property owners making investments and improvements and is
reimbursed through sales and real property taxes. Most TIRZs are
structured for 20 year or longer. This tool would be more useful if it
covered a larger geographical area, as it could take as long as 20 to 30
years to fi nance improvements such as relocating/burying overheard
power lines or making major infrastructure enhancements.
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Chapter 380/381 Development Agreements: this project specifi c tool is a
contract between a developer and the city or county that is structured like a
TIRZ but can also include other concessions such as gifts of right-of-way.
Management Districts: this tool works well for multiple property owners
seeking project funding for improvements, maintenance, management,
promotions, and capital costs. It is an overlapping tax or assessment
depending on how it is structured. While the enabling legislation provides for
creation through the TCEQ, most Management Districts are created by special
legislation, which allows cities to specify District powers.
Community Development Block Grants (CDBG): these grants fund local
community development activities such as aff ordable housing, anti-poverty
programs, and infrastructure development. CDBG, like other block grant
programs, diff er from categorical grants in that they are subject to less federal
oversight and are largely used at the discretion of state and local governments
and their grantees.
Hotel Occupancy Taxes: tax imposed on a hotel room or space costing $15 or
more per night. Local hotel taxes apply to sleeping rooms costing $2 or more
each day.