The City of Plano’s primary focus is to enrich its city with excellence and to strive towards improving the quality of life to the highest standards for its citizens. In doing so, the City of Plano works to enhance the City’s economy, by working side-by-side with its companies to promote growth in their industries. The City of Plano reflects this focus by considering companies in accordance to the criteria and procedures set with each respective agreement, and the subject of approval by the Plano City Council.
It is the City of Plano’s policy to encourage new investment and business attraction through the utilization of tax grants, performance-based job creation grants, and/or other redevelopment grants, as authorized by Chapter 380.001 of the Texas Local Government Code. The City additionally offers tax abatement, which may provide a reduction of taxes owed on new added value for a defined period of time, and is authorized by Chapter 312 of the Texas Tax Code.
GASB Statement No. 77, “Tax Abatement Disclosures,” addresses financial reporting for tax abatement agreements entered into by state and local governments. This Statement defines a tax abatement as resulting from an agreement between a government and an individual or entity in which the government promises to forgo tax revenues and the individual or entity promises to subsequently take a specific action that contributes to economic development or otherwise benefits the government or its citizens.