Port Arthur, Texas, January 02, 2018 -The City of Port Arthur and nine industrial and/or refining facilities have made and entered into Industrial District Agreements (IDA) effective January 1, 2018 through December 30, 2027.
The Port Arthur Business Enterprise Program promotes spending by these companies with qualified Port Arthur business enterprises.
Texas law allows cities and owners of property located in industrial districts outside of the city limits to enter into agreements as an alternative to annexation. As a result, the industrial property owner makes discounted payments to the City in lieu of ad valorem taxes.
The City of Port Arthur has entered into these types of agreement with industry for many years. The new Industrial District Agreements provide for these industries to make payments to the City starting in 2018 at 80% of the taxable value of the property and increases one percent (1%) per year through 2027 to a maximum of eighty-nine percent (89%).
The industrial property can earn additional discounts to reduce the initial percentage rates for each year if the property owners hire Port Arthur residents and/or spend targeted amounts with Port Arthur businesses that have been qualified as Port Arthur Business Enterprises (PABEs). Although hiring metrics have been included with the Industrial District Agreements for the past several years, the spend targets for PABEs have been modified with specific spend targets by each facility. If both hiring and spend targets are reached, the property owner can earn significant percentage reductions that could reduce the discount to seventy percent (70%) of the taxable value of the property. The combined spend target incentive for 2018 could result in approximately sixty-three million ($63,000,000) being spent by industrial property owners with certified Port Arthur businesses.
The City of Port Arthur's Business Enterprise program is open to any Port Arthur business located within the City's boundaries that has been in operation at least six months to become certified. For more information on becoming a PABE please visit
. We're here to help you register as a Port Arthur business enterprise and enjoy the benefits offered by our local industrial partners.