I have been asked to explore the possibility of the county receiving a lump sum in lieu of property taxes for a period of time(5 years) from a company planning to build a mineral processing plant in our county. Does anyone have any experience in this area? It apparently involves sec. 312 of the tax code and/or sec.381 of the local gov code.Any help would be appreciated. Jeb

We in Scurry County have several agreements with wind farm companies based on section 312 of the tax code.....basically and abatement agreement....with the company paying a lump sum every year. Not sure it is the best way to go, but it works for us, provides a known revenue stream and still allows the County to offer an abetement for economic developement.
If you want to see one of our agreement, my # is 325 573 7440
Mike Hartman, Scurry County Attorney
Of course, we have the guidelines in place and all the requirments of the tax code proir to granting the abatement. Further, if i remember correctly, the abatement must be in place prior to construction beginning on the project.

"Payment in lieu of taxes" or PILOT agreements seem to be a big thing for municipalities -- might be worth seeing if your local city attorney colleagues have some info or experience in this area, too. Keeping in mind the diffrences between cities and counties, of course.