Local Incentives

Property Tax Abatement

Chapter 380/381 Economic Development Agreements
Chapter 380 of the Local Government Code authorizes municipalities to offer incentives designed to promote economic development such as commercial and retail projects.  Specifically, it provides for offering loans and grants of funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity.

Chapter 381 of the Local Government Code allows counties to provide incentives encouraging developers to build in their jurisdictions. A county may administer and develop a program to make loans and grants of public money to promote state or local economic development and to stimulate, encourage and develop business location and commercial activity in the county.  The county also may develop and administer a program for entering into a tax abatement agreement.  This tool allows counties to negotiate directly with developers and businesses.

Orange County Uniform Tax Abatement Policy

School District Value Limitation (313 Agreement)

An appraised value limitation is an agreement in which a taxpayer agrees to build or install property, and create jobs, in exchange for a ten-year limitation on the taxable property value for school district maintenance and operations tax (M&O) purposes.

The minimum limitation value varies by school district.

The application for a limitation on the appraised value for M&O purposes is submitted directly to the school district and requires an application fee that is established by each school district.

4B Sales Tax Funding (City of Orange)

Type B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure and improvements for:

  • professional and amateur sports and athletic facilities, tourism and entertainment facilities, convention facilities and public parks;

  • related store, restaurant, concession, parking and transportation facilities;

  • related street, water and sewer facilities; and

  • affordable housing.

To promote and develop new and expanded business enterprises that create or retain primary jobs, a Type B EDC may fund:

  • public safety facilities;

  • recycling facilities;

  • streets, roads, drainage and related improvements;

  • demolition of existing structures;

  • general municipally owned improvements; and

  • maintenance and operating costs associated with projects.

Type B EDCs also may seek voter approval to spend Type B sales tax funds for a water supply, water conservation program or cleanup of contaminated property.

Type B EDCs created by cities with a population of 20,000 or less and those classified as landlocked communities may use sales tax proceeds to fund projects that promote new or expanded business development that do not create or retain primary jobs.

Contact the City of Orange Economic Development Corporation for program guidelines at 409.883.1077

Sales and Use Tax Refunds

The Texas state sales and use tax rate is 6.25%, but local taxing jurisdictions also impose sales and use tax up to 2% for a total maximum combined rate of 8.25%. West Orange imposes a sales tax rate of 8.0%. All other Orange County communities have adopted a combined rate of 8.25%.

Your business may be eligible for refunds on sales and use tax at the state and local rate.

More information sales and use tax refunds and exemptions.


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