Chapter 380 Financing

Redevelopment is one of the major focuses for Garland. Chapter 380.001 of the Texas Local Government Code allows cities to offer a range of incentives for economic development. This statute basically provides for loans and grants of city funds, as well as the use of city staff, city facilities, or city services at minimal or no charge. Whether a city provides any such incentive is completely discretionary. Garland may provide a Chapter 380 grant in the form of a municipal sales or property tax rebate tax rebate.

Sales Tax Rebate

Under Garland’s Chapter 380 program, the City has the ability to rebate some of the City’s portion of the 1.0% sales and use tax collected from business entities located in Garland. The City’s past practice is to rebate only a portion of the sales tax generated from the project receiving the incentive.

Property Tax Rebate

Also allowed under Chapter 380, the City has the ability to rebate some of the City’s incremental portion of the real or personal property taxes collected from business entities located in Garland. The City’s past practice is to rebate only a portion of the City’s incremental real property taxes generated from the project receiving the incentive. The base of the increment is the pre-improvement amount of the City’s real property tax receipts.