Tax Abatement

Chapter 312 of the Texas Tax Code allows cities to grant tax abatement to properties that meet certain economic development criteria. The city must first adopt the guidelines and criteria governing tax abatement.

The goals of the guidelines listed below in the draft resolution are to continue the promotion of high quality development and improve quality of life in the city. These goals are generally improved with the improvement of the local economy. For this reason, and as an incentive to economic growth, Universal City wishes to adopt a policy that allows tax abatement on a case-by-case basis in specific economic development zones called "Reinvestment Zones." 

To consider the policy of Guidelines and Criteria Governing Tax Abatements, the City Council held a public hearing on July 15, 2025 at 6:30 p.m. in the City Council Chambers, 2150 Universal City Blvd. The Guidelines and Criteria Governing Tax Abatement Resolution 987-2025 passed.

To consider the Reinvestment Zones, the City Council will hold a public hearing on August 5, 2025 at 6:30 p.m. in the City Council Chambers, 2150 Universal City Blvd.

Important Notes: 

• Tax abatement would ONLY apply to the Reinvestment Zones. Reinvestment Zones will be established after the policy of Guidelines and Criteria Governing Tax Abatements is passed.
• Improvements made prior to the adoption of the policy or designation of a Reinvestment Zone will not be eligible for abatement.