Pecos County Brief

25/08/2026

PECOS COUNTY BRIEF | THE TAX RATE IS GOING UP — BUT WHAT ARE TAXPAYERS ACTUALLY PAYING?

There has been a lot of discussion surrounding Pecos County’s tax rate, the proposed 2027 budget, county spending, reserves, elected-official compensation and tax abatements.

There are legitimate questions on all sides of this discussion.

Rather than tell residents whether Commissioners Court made the right or wrong decision, Pecos County Brief reviewed the county’s own budget documents and Texas property-tax rules.

The numbers tell a more complicated story than simply saying, “taxes went up 11%.”

YES, THE TAX RATE IS INCREASING

Pecos County’s tax rate is moving from:

2025: $0.7196 per $100 of taxable value

2026: $0.7990 per $100 of taxable value

The $0.799 rate consists of:

General Fund M&O: $0.676

Road & Bridge M&O: $0.123

Total: $0.799

That is an increase of $0.0794 per $100, or approximately 11.03% in the tax rate itself.

There is an important distinction with the year. This is the county’s proposed 2027 budget, but the property-tax rate supporting that budget is based on the 2026 tax year. That is why the valuation history ends with 2026 rather than showing a separate 2027 assessed valuation.

SOURCE: Pecos County Commissioners Court — Regular Session Agenda, August 24, 2026

https://www.co.pecos.tx.us/commissioners-court-regular-session-agenda-8242026/

DOES THAT MEAN YOU PERSONALLY PAY 11.03% MORE?

It depends on what happened to your taxable property value.

If your taxable value stayed exactly the same, then yes — the county portion of your property tax would increase approximately 11.03%.

For example, on $100,000 of unchanged taxable value:

At $0.7196 = $719.60

At $0.7990 = $799.00

Difference = $79.40 more

But if your taxable value decreased, the result changes.

A property’s taxable value would need to decline approximately 9.94% for the new $0.799 rate to produce roughly the same county tax bill as the old $0.7196 rate.

So, in simple terms:

If your taxable value stayed the same — you pay more.

If your taxable value fell less than about 9.94% — you still pay more, but the increase is smaller.

If your taxable value fell about 9.94% — you pay roughly the same.

If your taxable value fell more than about 9.94% — you could pay less county property tax despite the higher rate.

That is why an 11.03% increase in the tax RATE is not automatically an 11.03% increase in every taxpayer’s BILL.

SOURCE: Pecos County Commissioners Court — Regular Session Agenda, August 24, 2026

https://www.co.pecos.tx.us/commissioners-court-regular-session-agenda-8242026/

SOURCE: Texas Comptroller of Public Accounts — Truth-in-Taxation Tax Rate Calculations

https://comptroller.texas.gov/taxes/property-tax/truth-in-taxation/calculations.php

WHAT IS HAPPENING TO PECOS COUNTY’S TAX BASE?

Although this is the 2027 Proposed Budget, the property taxes supporting it are based on the 2026 tax year.

The county’s budget reports:

2024 assessed valuation: approximately $5.844 billion

2025 assessed valuation: approximately $5.447 billion

2026 assessed valuation: approximately $4.620 billion

From 2025 to 2026, Pecos County’s assessed valuation declined by approximately $826 million — about 15.2% in one year.

From 2024 to 2026, the decline is approximately $1.224 billion.

The 2026 assessed valuation of approximately $4.620 billion is the current tax-year value associated with the tax rate supporting the county’s proposed 2027 budget.

SOURCE: Pecos County — 2027 Proposed Pecos County Budget

https://www.co.pecos.tx.us/2027-proposed-pecos-county-budget/

IS PECOS COUNTY ACTUALLY COLLECTING MORE PROPERTY-TAX MONEY?

According to the 2027 Proposed Budget — NO.

Despite increasing the tax rate to $0.799, the proposed budget states that it will raise approximately:

$2.26 MILLION LESS IN PROPERTY-TAX REVENUE

than the previous year’s budget.

That represents approximately a 5.77% decrease in property-tax revenue.

The budget also states that approximately $120,548 of property-tax revenue will come from new property added to the tax roll.

So there are three important numbers:

Tax rate: UP approximately 11.03%

Assessed valuation: DOWN approximately 15.2%

Budgeted property-tax revenue: DOWN approximately $2.26 million, or 5.77%

An individual property owner whose taxable value stays unchanged can pay more while Pecos County as a whole collects less property-tax revenue because the countywide tax base has declined.

SOURCE: Pecos County — 2027 Proposed Pecos County Budget

https://www.co.pecos.tx.us/2027-proposed-pecos-county-budget/

WHY DOES A DECLINING TAX BASE MATTER?

Texas’ truth-in-taxation system specifically accounts for changes in taxable property value.

The Texas Comptroller explains that the no-new-revenue tax rate is designed to show the rate that would produce approximately the same amount of taxes from properties taxed in both years.

The Comptroller explains that if property values increase, the tax rate should decrease to produce the same revenue. If property values decrease, the calculated rate increases to produce the same revenue.

That helps explain how Pecos County can have a higher tax rate while still budgeting less total property-tax revenue.

It does NOT automatically mean Commissioners Court must adopt a particular rate.

Commissioners Court still makes decisions about the budget, expenditures, services, available funds and the tax rate ultimately adopted.

SOURCE: Texas Comptroller of Public Accounts — Truth-in-Taxation Tax Rate Calculations

https://comptroller.texas.gov/taxes/property-tax/truth-in-taxation/calculations.php

WHAT ABOUT COUNTY SPENDING AND RESERVES?

This is where the discussion becomes a policy question.

A declining tax base helps explain why there can be upward pressure on the tax rate.

It does not determine how Commissioners Court must respond.

Taxpayers can legitimately ask:

Should expenditures have been reduced?

Should hiring have been limited?

Should projects have been delayed?

Should more available fund balance have been used?

How much reserve should Pecos County maintain?

Texas Comptroller guidance specifically states that when determining the amount of property taxes necessary to fund a budget, a taxing unit considers its maintenance and operations needs, debt-service requirements and the amount of surplus funds, if any, it plans to use to reduce its tax levies.

In other words, asking whether reserves should be used is a legitimate part of the budget discussion.

How much should be used is a policy decision.

SOURCE: Texas Comptroller of Public Accounts — Truth-in-Taxation: Tax Rate Adoption

https://comptroller.texas.gov/taxes/property-tax/truth-in-taxation/index.php

SOURCE: Pecos County — 2027 Proposed Pecos County Budget

https://www.co.pecos.tx.us/2027-proposed-pecos-county-budget/

WHAT ABOUT THE COMMISSIONERS? ARE THEY AFFECTED TOO?

Holding county office does not create a general property-tax exemption under Texas law.

Texas Tax Code Chapter 11 establishes property-tax exemptions. Simply serving as a county commissioner, elected official or county employee does not itself create an exemption from otherwise taxable property.

We are not claiming every commissioner owns taxable property in Pecos County because we have not researched their individual property holdings.

The point is simply this:

If an elected official owns taxable property, holding county office does not by itself exempt that property from applicable property taxes.

SOURCE: Texas Legislature — Texas Tax Code, Chapter 11

https://statutes.capitol.texas.gov/Docs/SDocs/TAXCODE.pdf

ALL FOUR PECOS COUNTY COMMISSIONERS DECLINED A BASE-SALARY INCREASE FOR 2027

Pecos County’s official 2027 compensation notice shows:

Commissioner Precinct 1:
$86,243 → $86,243

Commissioner Precinct 2:
$86,243 → $86,243

Commissioner Precinct 3:
$86,243 → $86,243

Commissioner Precinct 4:
$86,243 → $86,243

2027 base-salary increase: $0

The commissioners did receive base-salary increases during previous budget cycles. But all four declined an additional base-salary increase for 2027.

There is another important detail concerning their travel allowance.

Each commissioner receives a $12,000 annual travel allowance.

That allowance remained unchanged from 2025 through proposed 2027.

In other words, the $12,000 travel allowance is not a new benefit associated with the 2027 budget and did not increase during this budget cycle.

The county’s official 2027 salary notice confirms the $86,243 salary and $12,000 travel allowance for all four commissioners.

The point is not to praise or criticize the commissioners.

It is simply relevant context: the commissioners received salary increases in previous years, but all four declined another base-salary increase for 2027, and their existing travel allowance did not increase.

SOURCE: Pecos County — 2026 Elected Officials Salaries

https://www.co.pecos.tx.us/notice-2026-elected-officials-salaries/

SOURCE: Pecos County — 2027 Elected Officials Salaries

https://www.co.pecos.tx.us/notice-2027-elected-officials-salaries/

WHAT ABOUT TAX ABATEMENTS?

This is another area where the starting numbers matter.

If a company announces a $500 million project on property where those improvements do not currently exist, Pecos County was not already collecting property taxes on $500 million of developed property before that project was constructed.

For example, if property currently being used as ranch land later receives new buildings, machinery, equipment or other improvements, those improvements create new value that was not previously sitting on the tax roll in that developed form.

Texas’ truth-in-taxation system specifically recognizes “new property value.”

The Texas Comptroller explains that new real-property value includes new structures and additions to existing improvements.

The Comptroller also specifically addresses value previously exempt under a tax-abatement agreement as the abatement expires or its exempt percentage declines.

SOURCE: Texas Comptroller of Public Accounts — Truth-in-Taxation Tax Rate Calculations, New Property Value

https://comptroller.texas.gov/taxes/property-tax/truth-in-taxation/calculations.php

That does NOT mean an abatement costs Pecos County nothing.

It also does NOT mean every abatement is a good deal.

It means the financial effect of an abatement cannot accurately be determined simply by adding together the announced investment of every project and treating that entire amount as existing taxable value Pecos County previously taxed and then “gave away.”

To properly evaluate an individual abatement, taxpayers need to know:

What was the property’s taxable value before development?

How much new value was actually created?

How much remains taxable during the agreement?

How much is exempt?

What does the company actually pay Pecos County?

Are additional payments required?

What investment and employment requirements must be met?

What happens if those requirements are not met?

And what becomes taxable as the exemption declines or expires?

Those are the numbers needed to determine the actual financial effect of an individual abatement.

SOURCE: Texas Comptroller of Public Accounts — Truth-in-Taxation Tax Rate Calculations

https://comptroller.texas.gov/taxes/property-tax/truth-in-taxation/calculations.php

SOURCE: Texas Legislature — Texas Tax Code §26.012

https://statutes.capitol.texas.gov/Docs/SDocs/TAXCODE.pdf

Pecos County Brief will continue reviewing the county’s budget, tax rates, valuations and economic-development agreements as those records become available.

Stay informed. Ask questions. Follow the records.
- Pecos County Brief

21/08/2026

Pecos County AgriLife Extension/4-H is hosting a Co****le Tournament on August 29 at the Pecos County Civic Center.

Open, youth and family divisions are available, with prizes and cash payouts. Registration deadline is August 26.

Check out the original post below for registration information and full tournament details. Help spread the word!

Sign up today for a Co****le Tournament that you don’t want to miss with great prizes and cash payouts! Use the link below or scan the QR Code to sign up don’t miss the deadline get your entries in today!!! https://docs.google.com/forms/d/e/1FAIpQLSe65rAEWHqm-AfFP4nLFsTZACI9cDRM74K21UBQGsBx2U_yrg/viewform?usp=header

21/08/2026

CORMINT SPEAKS PUBLICLY ON TEXAS GROWTH — A CLOSER LOOK AT FORT BLOCKS IN PECOS COUNTY

Today, August 21, 2026, Cormint publicly shared a letter from President and CEO Jamie McAvity to Governor Greg Abbott, addressing the company's approach to continued data center development in Texas.

The letter addresses several issues that have become increasingly important in conversations surrounding large-load development — including power infrastructure, generation, water use, transparency and local employment.

Cormint states that the capital costs, interconnection costs and upgrades required for its facilities are the company's responsibility. The company also addresses dispatchable generation, stating that where additional load requires generation, its approach is to bring that generation as part of the development.

Cormint's willingness to publicly address these issues is important. As development continues across Pecos County, having companies clearly state their plans and commitments gives residents information they can review, compare with public records and continue following as projects develop.

We are attaching CEO Jamie McAvity's letter to Governor Abbott so residents can read Cormint's complete statement for themselves.

Source:
Cormint, Inc. — Official LinkedIn statement, August 21, 2026
CEO letter to Governor Greg Abbott attached to this post.

SO, WHAT IS CORMINT'S PRESENCE IN PECOS COUNTY?

Cormint already operates Fort Blocks near Fort Stockton.

According to Cormint's current public information, Fort Blocks has:

• 130 MW energized and operating
• Approximately 640 acres controlled and ready for expansion
• A stated pathway to 558 MW

Fort Blocks began at a much smaller scale.

In December 2022, Cormint announced that it had energized its first 24 MVA at the Fort Stockton site after acquiring transmission assets associated with the decommissioned Sherbino 1 Wind Farm. At that time, Cormint reported approval to scale the site to 130 MW.

Cormint now reports that the 130 MW is energized and operating.

Sources:
Cormint Data Systems — Fort Blocks / Power & Sites
https://www.cormint.com/power-sites/

Cormint Data Systems — Phase 1 Go Live
https://www.cormint.com/article/phase-1-go-live

CORMINT'S AGREEMENT WITH PECOS COUNTY

Fort Blocks has a long-term Chapter 381 Economic Development Agreement with Pecos County.

The Texas Comptroller's records identify the agreement between Pecos County and Fort Blocks LLC, a subsidiary of Cormint Data Systems.

The agreement became effective November 22, 2021, and runs through December 31, 2042.

Under the agreement, Fort Blocks committed to more than $100 million in capital investment.

The agreement also requires Fort Blocks to employ and retain at least 50 full-time-equivalent positions, with at least 33 employees residing in Pecos County, beginning by December 31, 2024 and subject to the terms of the agreement.

Sources:
Texas Comptroller — Fort Blocks Agreement #0002185
https://comptroller.texas.gov/economy/development/search-tools/ch380-381/economic-development-agreements-details.php?agreement=0002185

Texas Comptroller — Full Pecos County/Fort Blocks Chapter 381 Agreement
https://assets.comptroller.texas.gov/dat/ch380/0002185/0002185-Pecos.pdf

WHAT DID PECOS COUNTY COMMIT TO?

The agreement establishes commitments on both sides.

Fort Blocks pays its Pecos County ad valorem taxes. If the requirements of the agreement are satisfied, Pecos County provides an economic-development Program Grant based on 100% of the County ad valorem taxes for tax years 2023 through 2042.

Fort Blocks separately agreed to make annual Payments in Lieu of Taxes (PILOT):

2023 — $290,929.71
2024–2042 — $193,953.14 annually

These provisions concern the Pecos County portion of ad valorem taxation and do not mean Fort Blocks pays no taxes to other taxing entities.

Source:
Texas Comptroller — Full Pecos County/Fort Blocks Chapter 381 Agreement
https://assets.comptroller.texas.gov/dat/ch380/0002185/0002185-Pecos.pdf

HOW IS COMPLIANCE VERIFIED?

The agreement requires Fort Blocks to provide Pecos County with an Annual Compliance Verification documenting performance under the agreement.

That documentation is part of the process used to determine whether the requirements for the applicable County Program Grant have been satisfied.

While the Chapter 381 agreement itself is publicly available, we have not located the underlying annual compliance certifications publicly posted online.

Because we have not reviewed those records, we cannot independently confirm from the information currently available online whether Fort Blocks is presently meeting the 50 FTE / 33 Pecos County resident requirement.

That does not mean the requirements have not been met. It means the annual documentation needed to independently verify current compliance has not yet been located publicly.

Source:
Texas Comptroller — Full Pecos County/Fort Blocks Chapter 381 Agreement
https://assets.comptroller.texas.gov/dat/ch380/0002185/0002185-Pecos.pdf

LOCAL INVOLVEMENT

Cormint is currently listed as a Gold Member of the Fort Stockton Chamber of Commerce, the Chamber's highest published corporate membership tier.

Sources:
Fort Stockton Chamber of Commerce — Cormint Data Systems
https://fortstockton.org/chamber-member/cormint-data-systems/

Fort Stockton Chamber of Commerce — Membership Levels
https://fortstockton.org/join-the-chamber/

WHAT COULD COME NEXT AT FORT BLOCKS?

Cormint currently describes Fort Blocks as having 130 MW energized and operating, 640 acres controlled and ready for expansion, and a pathway to 558 MW.

Power generation could also become an important part of that future.

Cormint publicly states that Fort Blocks has adjacent natural-gas pipelines, land control and power-generation expertise that position the company to develop behind-the-meter generation capacity.

That is particularly relevant alongside Cormint's public statement regarding bringing dispatchable generation where additional load requires it.

There is an important distinction: Cormint has publicly identified behind-the-meter generation as part of Fort Blocks' development potential, but we have not identified a public announcement or approval for a specific natural-gas generation project at the site.

As Fort Blocks continues to develop, this is something worth following through the public record — particularly how future expansion, generation and infrastructure develop alongside the commitments already established between Fort Blocks and Pecos County.

Source:
Cormint Data Systems — Fort Blocks / Power & Sites
https://www.cormint.com/power-sites/

Stay informed. Ask questions. Follow the records.
— Pecos County Brief

19/08/2026

PECOS COUNTY: ADDITIONAL CONTEXT ON WATER, CRMWD & TAX ABATEMENTS

There has been a lot of discussion following this week's public meetings involving groundwater, industrial development and tax abatements.

Public questions and concerns are an important part of the process. As those conversations continue, there are several pieces of public-record information that may help provide additional context.

CRMWD & LA ESCALERA RANCH

The Colorado River Municipal Water District (CRMWD) currently has drilling-permit applications before the Middle Pecos Groundwater Conservation District involving La Escalera Ranch.

According to MPGCD's public-hearing notice, the applications involve:

• Two production wells
• Two monitor wells
• Completion in the Capitan Reef Complex Aquifer
• Estimated withdrawal rates of approximately 500–1,000+ gallons per minute per production well
• A stated purpose of “Public Supply and Industrial Supply for possible export outside Pecos County.”

The public hearing began July 21 and continued August 17.

During the August 17 proceeding, the Board approved party status for participants in the hearing process. That action concerned participation in the proceeding and was not approval of the CRMWD drilling-permit applications.

The August 17 meeting minutes have not yet been approved. We will compare the meeting discussion with the official record when it becomes available.

SOURCE:
Middle Pecos Groundwater Conservation District — CRMWD/La Escalera Ranch Public Hearing Notice
https://www.middlepecosgcd.org/

CAPITAN REEF COMPLEX AQUIFER

The Texas Water Development Board identifies the Capitan Reef Complex as a minor aquifer underlying portions of Culberson, Hudspeth, Jeff Davis, Brewster, Pecos, Reeves, Ward and Winkler counties.

TWDB has previously evaluated increased groundwater-pumping scenarios involving La Escalera Ranch.

Those scenarios ranged from approximately:

• 7,560 acre-feet per year
• 15,000 acre-feet per year
• 25,000 acre-feet per year
• 34,500 acre-feet per year

TWDB also noted an important limitation: the simulated drawdowns produced by that regional groundwater model were not considered reliable for predicting the impact of an individual permit application, although TWDB stated they could be useful for comparative purposes.

That makes project-specific information—including proposed production, pump testing, monitoring and aquifer response—important as the CRMWD proceeding continues.

Concerns about groundwater drawdown can be followed through that data as it becomes available.

SOURCE:
Texas Water Development Board — GMA 7 Explanatory Report, Capitan Reef Complex Aquifer
https://www.twdb.texas.gov/groundwater/dfc/docs/2021/GMA7_DFCExpRep_Capitan_2021.pdf

Texas Water Development Board — Capitan Reef Complex Aquifer
https://www.twdb.texas.gov/groundwater/aquifer/minors/capitan-reef-complex.asp

CRMWD NOTICE

Some participants have stated that they personally received notice of the CRMWD proceeding only a few days before the July 21 hearing.

The official public-hearing notice was filed July 8, 2026, for the July 21 hearing.

These involve two different parts of the notice process: the filing/posting of public notice and delivery of individual notice.

To determine whether individual notice met MPGCD's requirements, the applicable notice rules and mailing records would need to be reviewed—including who was required to receive notice and when those notices were sent.

We will continue looking for those records.

SOURCE:
Middle Pecos Groundwater Conservation District — July 21, 2026 CRMWD Public Hearing Notice & MPGCD Rules
https://www.middlepecosgcd.org/

AMAZON & CONSTRUCTION WATER

During the August 17 MPGCD meeting, General Manager Ty Edwards stated that GW Ranch/Amazon had not submitted an application to MPGCD for groundwater-production well permits as of that meeting.

There was also discussion regarding water trucks and construction water being obtained from outside the immediate project area.

Observations of water trucks can help identify questions worth following, but additional records would be needed to establish the water's specific source, quantity, purchaser, contractual arrangement and ultimate use.

Those are details that can continue to be followed as the project develops.

SOURCE:
August 17, 2026 MPGCD meeting — statements and discussion during the public meeting.

The August 17 minutes have not yet been approved. Meeting statements will be compared with the official minutes when available.

PCMHD & CHAPTER 312 TAX ABATEMENTS

There has also been discussion regarding the tax-abatement agreements considered by the Pecos County Memorial Hospital District on August 18.

Chapter 312 of the Texas Tax Code establishes the process for these agreements.

According to the Texas Comptroller, a Chapter 312 tax abatement can exempt all or part of the increase in a property's value from taxation for a limited period.

The existing value of real property is not automatically erased from the tax rolls simply because an abatement is granted.

Chapter 312 agreements may not exceed 10 years.

SOURCE:
Texas Comptroller of Public Accounts — Chapter 312 Tax Abatements
https://comptroller.texas.gov/economy/development/prop-tax/ch312/faq.php

PUBLIC NOTICE

Texas Tax Code §312.207(d) requires at least 30 days' public notice before the meeting at which approval of a tax-abatement agreement will be considered.

The notice must include information such as:

• Property owner's and applicant's names
• Reinvestment zone
• General description of the proposed improvements
• Estimated cost of those improvements

PCMHD maintains its tax-abatement notices publicly.

Public notice and whether residents believe additional information or discussion should occur before a vote are separate questions. Both can be part of the public conversation.

SOURCE:
Texas Comptroller — Six Steps to Approve a Tax Abatement
https://comptroller.texas.gov/economy/development/prop-tax/ch312/abatement-process.php

Pecos County Memorial Hospital District — Tax Abatement Requests
https://www.pcmhfs.com/getpage.php?name=Tax_Abatement_Requests

WHAT WAS ACTUALLY APPROVED AUGUST 18?

The projects considered during the meeting should be kept separate.

Actions were approved involving:

• Greasewood II BESS LLC — amendment to an existing agreement
• Elk Ridge Solar LLC — tax-abatement agreement
• Antler Peak Solar LLC — tax-abatement agreement

The Pacifico GW Ranch LLC application was withdrawn.

Pecos County Economic Development Director Remie Ramos stated during the meeting that the withdrawal followed the sale of the GW Ranch project.

No Pacifico GW Ranch agreement was approved under that application during the August 18 meeting.

According to information presented during the meeting, there was also no Amazon tax-abatement application before PCMHD at that time.

SOURCE:
Pecos County Memorial Hospital District — August 18, 2026 Board meeting and Tax Abatement Requests
https://www.pcmhfs.com/getpage.php?name=Tax_Abatement_Requests

The August 18 meeting minutes have not yet been approved. Meeting statements and actions will be compared with the official minutes when available.

HOW DOES AN ABATEMENT PROPOSAL REACH PCMHD?

During the August 18 meeting, Pecos County Economic Development Director Remie Ramos explained his role in the process.

Ramos stated that, while representing Pecos County, he introduces companies seeking an abatement to PCMHD CEO Betsy Briscoe.

Company representatives are then introduced to the Hospital District Board, and Ramos discusses the proposed agreement and its financial impact.

The proposal is reviewed at the Hospital District level by its CEO and Board.

The Pecos County Memorial Hospital District Board of Directors ultimately determines whether an agreement is suitable for the Hospital District and whether to approve it.

Pecos County and the Pecos County Memorial Hospital District are separate taxing entities. Approval of an abatement by one taxing entity does not automatically constitute approval by another.

SOURCE:
August 18, 2026 PCMHD Board meeting — explanation provided by Pecos County Economic Development Director Remie Ramos.

The August 18 meeting minutes have not yet been approved. This reflects information presented during the public meeting and will be compared with the official minutes when available.

WHAT PROTECTIONS ARE REQUIRED IN A CHAPTER 312 AGREEMENT?

Texas law requires more than simply approving a tax reduction.

According to the Texas Comptroller, Chapter 312 agreements must include provisions that:

• Identify the improvements being made
• Allow the taxing entity to inspect the property for compliance
• Require annual certification of compliance
• Provide for recapture of lost tax revenue if required improvements are not made
• Include the terms agreed upon with the property owner
• Allow the taxing entity to cancel or modify the agreement if the owner fails to comply

The individual agreements themselves remain important because they establish the project-specific requirements beyond these statutory minimums.

SOURCE:
Texas Comptroller — Six Steps to Approve a Tax Abatement
https://comptroller.texas.gov/economy/development/prop-tax/ch312/abatement-process.php

CORPORATE REVENUE, LLCs & PROPERTY TAXES

Several financial figures and concerns regarding project LLCs were raised during public comment.

Those comments are part of the public record and can be researched further.

For purposes of evaluating a property-tax abatement, however, corporate revenue and local property taxation are different measurements.

The financial impact of an abatement depends on factors including:

• Taxable property value
• Value subject to the abatement
• Applicable tax rate
• Percentage or amount abated
• PILOT or other payments
• Duration of the agreement
• Performance requirements
• Recapture provisions

Likewise, identifying a project as an LLC tells us its legal business structure, but additional corporate records are necessary to establish ownership and relationships between the project entity and parent or affiliated companies.

Those relationships can be researched separately rather than assumed from the entity name alone.

SOURCE:
Texas Comptroller — Chapter 312 Tax Abatement Information
https://comptroller.texas.gov/economy/development/prop-tax/ch312/

WAS IT THE BEST POSSIBLE AGREEMENT?

That is a question that can be examined as additional records become available.

To evaluate an agreement fairly, useful information includes:

• Estimated taxes without the abatement
• Taxes and payments received with the agreement
• Amount of property value abated
• Capital investment requirements
• Employment commitments, if included
• Performance requirements
• Default and recapture provisions
• What becomes fully taxable after the agreement expires
• Comparable agreements involving similar projects elsewhere in Texas

The Texas Comptroller maintains Chapter 312 reporting records that can also be used to compare agreements across Texas.

SOURCE:
Texas Comptroller — Chapter 312 Property Tax Abatement
https://comptroller.texas.gov/economy/development/prop-tax/ch312/

FOLLOWING THE RECORDS

Public participation matters.

Questions about groundwater, taxes and large industrial projects deserve attention.

Statements made during public comment give residents an opportunity to raise those questions and concerns.

Government officials and company representatives also provide information during public meetings.

And permits, agreements, groundwater measurements, financial records and approved minutes give everyone an opportunity to independently follow what happens afterward.

Some questions have answers today.

Others will require additional records.

There is no need to choose a conclusion before those records are available.

As more information becomes public, we will continue reviewing it and make corrections or updates when necessary.

Follow the permits.
Follow the agreements.
Follow the groundwater data.
Follow the public dollars.

Let the records continue filling in the picture.

Stay informed. Ask questions. Follow the records.
— Pecos County Brief

A tax abatement is a local agreement between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years.