An Ohio company has made an agreement with a Houston-area school district that will slash taxes on a half-billion-dollar project.
The Angleton School District has agreed to partner with MPLX, a limited partner of Marathon Petroleum Corp. The school district will tax the project as if it were worth $30 million for the 10 years of the incentive under Texas Tax Code 313 or the Texas Economic Development Act. This is less than one-tenth of the total building cost of the project. The deal will save MPLX more than $50 million over 10 years. The terms of the agreement were published by the Texas Comptroller in November.
Texas Tax Code 313 allows companies building certain infrastructure to make an agreement with school districts that will limit the appraised property value for tax purposes. The money that the school district "loses" through the abatement is made up by an increase in state aid.
Houston Business Journal reports that the new project is a natural gas liquids fractionation plant in Brazoria County. It will cost an estimated $460 million to build.
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