Incentives

All three taxing districts within San Angelo (City, County, and the San Angelo Independent School District) may provide 100% tax exemptions for inventory and work-in-process that will be shipped outside of the state of Texas and kept on site for less than 175 days. San Angelo is one of the few cities in Texas where all three taxing districts provide this incentive. Application must be made annually by contacting Mr. Bill Benson, Chief Appraiser, Tom Green County Appraisal District, at (325) 658-5575.

Companies that are approved as designated projects within the zone are eligible for sales tax refunds of up to $2,000 per new employee over the 5 year period. The total amount of tax refunds is capped at $1,250,000 per company over the 5 years. An additional advantage to the program is a refund of state franchise taxes paid. The company receiving the benefits of the program must agree to hire 25% of their new employees from within the zone.

San Angelo voters have approved a 1/2 cent increase in the sales tax for community and economic development projects. The San Angelo Development Corporation has established priorities for manufacturing, warehousing/distribution, telecommunications services, data processing, and home/regional offices. Loans and grants are available for buildings, land, equipment, training, site infrastructure, moving expenses, lease subsidies, and other expansion costs. The minimum job and investment thresholds are 5 new jobs and $125,000 in new investment. Job retention may also be considered. The project must meet state mandated NAICS codes and “a definition of primary employees.”

 

A company that wishes to locate outside of the city limits of San Angelo and still avail themselves of city services, may apply to the City for designation as an industrial district, with the expectation that they will be annexed at some future date. These agreements typically last for 7 years, but may be extended. During this period of time they are outside of the city limits, the company does not pay city personal property tax (inventory and equipment), but they do pay a negotiated percentage of real estate tax they would normally pay. Past agreements were 10% in year one, 20% in year two, etc. The cost of services that the company wishes to obtain from the City are negotiated. An industrial district in San Angelo is located in the Northeast part of the city and includes companies like Ethicon and Coverlay in the Chaparral Commercial Center.