Tax-Abatement

A lot of people have asked a fair question: If the county can’t legally stop a data center from being built on private land, why focus so much on the tax abatement? The short answer is this: Because the tax abatement is the most meaningful leverage the county — and the public — actually has. The county can’t “ban” a data center — but it can refuse to subsidize one In Texas, counties generally have very limited zoning authority. That means: ...

Yes — a PILOT can exist without a tax abatement — but it’s important to understand what that really means, because it works very differently than most people assume. This explainer focuses on how PILOTs work in Texas, especially at the county level. What is a PILOT? A PILOT is a Payment In Lieu Of Taxes. It is not a tax. It is a voluntary payment a company agrees to make by contract. ...