Smith County renews tax incentives for local businesses

Published 5:35 am Saturday, December 14, 2024

Smith County officials voted to renew long standing tax amendments for two companies in the community, Tuesday at the weekly commissioners court meeting.

“We have quite a few new things happening in our community, but these companies that have been around a long time are very important to keep, “ County Judge Neal Franklin said.

Scott Martinez, president and CEO of the Tyler Economic Development Council, recommended the court renew John Soules Foods and Tyler Pipe’s Reinvestment Zone designation for another five years.

The John Soules Foods Reinvestment Zone was first designated on Sept. 12, 1994, and last renewed on Dec. 17, 2019. In the past year, the company invested over $1.5 million beyond its initial tax abatement commitment and employs 1,016 workers. The zone covers 67.451 acres across three tracts of land where the company operates.

The court also reviewed the renewal of the Tyler Pipe Reinvestment Zone, originally established in May 1994 and last renewed in December 2019. The Tyler Pipe Reinvestment Zone covers a total of 2,560 acres. Over the past year, Tyler Pipe has invested more than $3.4 million and currently employs 441 workers.

Renewing these reinvestment zones signals to the companies that Tyler and Smith County value its presence and want to encourage further investment and growth in the area, according to TEDC.

A tax abatement is a tool local governments use to attract and retain businesses by reducing or exempting property taxes on investments like facilities or equipment. In exchange, businesses commit to creating jobs or making significant local investments.

In Texas, reinvestment zones are designated to facilitate these abatements. Renewing the reinvestment zone allows Smith County to continue offering tax incentives, supporting the company’s role as a major employer and driving local investment and job creation.

For residents, a tax abatement means the local government is giving a company a break on property taxes to encourage them to stay, grow and create jobs. The goal is to boost the local economy, provide employment opportunities and bring in more business activity.

While it can mean the company pays less in taxes, the hope is that the economic benefits — like stable jobs and a stronger local economy — outweigh the tax revenue being waived. For day-to-day life, it can lead to more job security for those employed by the company and potentially more services or improvements in the area as the local economy grows.

The court approved a request for an Enterprise Agreement will cost $58,000 annually, with the increase included in the 2025 budget. The upgrade will allow the IT department to serve other county departments without purchasing individual licenses for new users or integrations.

The IT department uses Environmental Systems Research Institute, Inc. (ESRI) software for GIS functions countywide and is part of a consortium with the Appraisal District, City of Tyler, and 911 District.

The court approved a five-year agreement with Axon Enterprise, Inc. via BuyBoard Cooperative Purchasing Program for Tasers for the Sheriff’s Office and to approve the 2024 Federal Equitable Sharing Agreement and Certification for the Smith County Sheriff’s Office.

The court voted to approve the hiring of a candidate for the vacant Court Coordinator position in County Court at Law #2. Judge Sarah Maynard conducted interviews and selected a candidate with 26 years of experience in family and civil cases. She believes this individual will be a great fit for the role and has requested to hire them as Court Coordinator II at a salary of $61,311.

The court reviewed monthly reports from Smith County departments and approved the final plat for the Brown Subdivision in Precinct 2.

The court approved the following:

The installation of underground and aerial fiber optic cable, vaults, and pedestals on County Roads 223, 246, 242, 243, 2341, 2309, 21, 234, and 233 and the installation of a pole with power supply and fiber optic cable on County Road 3199 in Precinct 2..

The installation of aerial and underground fiber optic cable on County Roads 244, 3211, 26, 29, 3199, 2284, and 217 and the installation of underground fiber optic cable, vaults, and pedestals on County Roads 393 and 384 in Precinct 3.