313

What is a Chapter 313 Agreement?

Chapter 313 of the Texas Tax Code is a major incentive to promote economic development in the State of Texas. Texas’ relatively high local property taxes can be an obstacle to businesses considering whether to locate here. Chapter 313 allows school districts, under specific conditions, to limit the taxable value of a business with respect to M&O taxes for a period of ten years. 

What are the benefits to the school district?

In addition to supporting local economic development, 313 Agreements add value to the tax rolls (full value for I&S). Through job creation and commerce, 313s provide growth for the local economy. The District receives payment from the taxpayer that makes up the loss of school revenue due to the reduced taxable value of the property. Because this is a state incentive, the 313 program is funded by the state rather than local revenue.  These payments to the District are not subject to recapture, are not considered tax revenue for school funding purposes, and can be used by the District without restriction.

Click here to read the Chapter 313 Agreements Information (HB 3676)

Below is information regarding the Groesbeck ISD School Board Training conducted at a special school board meeting on April 25, 2022, and other information on Chapter 313:

Click here to read the Overview of the Texas Economic Development Act: Chapter 313 of the Texas Tax Code

Click here to download the BT Fewell Solar (Developed by Belltown Power) Presentation

 

The school board approved the Chapter 313 application process for BT Fewell Solar and Stetson Renewables Holdings at the special school board meeting on Monday, May 2, 2022.