Land Use & Zoning

A Texas city creates a 'tax abatement' agreement with a commercial developer. This means the city:

AEliminates all property taxes on the development permanently
BAgrees to reduce or eliminate property taxes for a specified period to incentivize economic development✓ Correct
CProvides free land to the developer
DAssumes liability for all environmental remediation on the site

Explanation

Tax abatement agreements in Texas allow cities to reduce or waive property taxes on new commercial or industrial development for a specified period (typically 10 years) to attract investment and job creation to the area.

Related Texas Land Use & Zoning Questions

Practice More Texas Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Texas Quiz →