SUBJECT
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An Ordinance re-adopting Guidelines & Criteria Governing Tax Abatements by the City of Laredo in accordance with the requirements in Section 312.002 of the Texas Property Tax Code; providing for an effective date of February 22, 2026 through February 22, 2028; and providing for publication.
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PREVIOUS COUNCIL ACTION
On May 4, 2026, a public hearing was held and an ordinance was introduced to establish guidelines and criteria governing tax abatements by the City of Laredo. State law requires that the guidelines are only effective for a period of two (2) years; therefore, it is necessary to re-adopt the guidelines and criteria every two (2) years.
BACKGROUND
Since 1998, the City of Laredo has offered a tax abatement program. In the past, the director of Laredo Development Foundation (LDF) indicated that companies who were considering locating in Laredo asked if the City of Laredo has a tax incentive program. In 1998, the LDF recommended that tax abatement incentives be initiated in the City of Laredo. As a result, the City of Laredo adopted through Ordinance No. 98-O-141 Guidelines and Criteria as prepared by the LDF. Since then, City Council has been re-adopting guidelines and criteria in accordance with state law.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Strong
Supporting goal(s)/policy(ies):
Goal 5.1 - Promote economic development and diversification.
Policy 5.1.1 - Support business recruitment, retention, and expansion efforts.
Policy 5.1.3 - Encourage development that increases employment opportunities
Summary of alignment:
The re-adoption of tax abatement guidelines strongly aligns with the Viva Laredo Comprehensive Plan through its support of broader economic development objectives. While the Plan does not explicitly mention tax abatements, the ordinance advances key policy directions related to business recruitment, economic diversification, and job creation.
This ordinance supports broader planning themes including economic development, competitiveness, and employment growth, but does so through implementation mechanisms not specifically detailed in the Comprehensive Plan.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of Ordinance.
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Fiscal Impact
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Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
The City will receive less revenue if City Council approves future tax abatement agreements.