Industrial Districts

According to terms of the City’s current Industrial District Agreement (IDA), the company renders to the City an amount “in lieu of taxes” on the company’s land, improvements, and tangible personal property with the following conditions:

Value Years

• Value Years 2020 – 2031: 64% of the amount of ad valorem taxes payable if the company’s land, improvements and tangible personal property had been located within the City.
• Value Years 2014 – 2019: 63% of the amount of ad valorem taxes payable if the company’s land, improvements and tangible personal property had been located within the City.

Substantial Increases in Value

The City views substantial increases in value of land, improvements, and tangible personal property (excluding inventory) dedicated to new construction as:

• An amount equal to 30% of the amount of ad valorem taxes for Value Years 2020 – 2031.
• An amount equal to 20% of the amount of ad valorem taxes for Value Years 2014 – 2019, which would be payable if the company’s land and tangible personal property had been located within the City during the remaining term of the agreement.

Please note that if existing property values depreciate below the property value established on January 1, 2019, an amount equal to the amount of depreciation will be removed from the calculation  to restore the value to the January 1, 2019 value. Any construction in progress on January 1 shall be exempt for that year.

City's Agreement

In return, the City of La Porte agrees that the company’s land covered by an IDA:

• Will not be annexed within the 12-year term of agreement
• Shall have no right to City services
• Shall not be subject to City ordinances governing:
  • Plats and subdivision of land
  • Any building, electrical, plumbing, or inspection codes
  • Attempt to control the conduct of business except for land 100 foot wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146, which are subject to certain regulations

City Services

Also, within the industrial districts, the City has established policies for limited amounts of water and sewer service for specified contract periods. The City also currently provides Ambulance Service to the Bayport Industrial District through an agreement with the Bayport Association, and to the Battleground Industrial District on a company-by-company basis.

Vendors Doing Business in Industrial Districts
For vendors doing business in the industrial districts, please note that the sales tax rate is 6.25%. To search for your sales tax rate by address location, please visit the Sales Tax Rate Locator on the State Comptroller's Office website.