INCREASING ECONOMIC DIVERSITY
Anna is somewhat unique in that it has two economic development corporations, the A and B type: Anna EDC (Economic Development Corporation) the A-type; and Anna CDC (Community Development Corporation), the B-type. Type A EDCs are typically created to fund industrial development projects such as business infrastructure, manufacturing and research and development. Type B CDCs can fund all the same projects eligible for Type A, as well as quality of life improvements such as parks.
ECONOMIC DEVELOPMENT Vision and Mission Statements
Anna has created a balanced and sustainable tax base that invites high quality jobs, facilitates excellent quality of life with well-maintained and first-rate infrastructure, and offers a wide range of housing and public facilities that build community identity and pride and engage neighbors in meaningful ways.
EDC’s MISSION – To identify and support opportunities that expand the city’s business tax base and promote job growth in Anna.
CDC’s MISSION – To identify and fund projects that enhance the quality of life in Anna and support the work of the EDC in the community.
economic development incentives
The City of Anna and its EDC/CDC consider candidates for economic development incentives on a case-by-case basis. The key criteria are: amount of capital investment, type of project, number of permanent jobs, wage levels, and added tax value. Those receiving incentives are required to enter into a performance agreement.
- Tax Increment Financing – According to Chapter 311 of the Texas Tax Code, the City may enter into economic development and infrastructure reimbursement agreements to pay for improvements within a zone to attract new development. A Tax Increment Reinvestment Zone is created when a TIF project begins. The City of Anna has one active TIRZ.
- Tax Abatements – According to Chapter 312 of the Texas Tax Code, tax abatements allow the City to designate tax reinvestment zones and negotiate tax abatement agreements with applicants. These abatement agreements authorize the appraisal districts to reduce the assessed value of the taxpayer’s property by a percentage specified in the agreement, and the taxpayer will pay taxes on the lower assessed value during the term of the agreement. The City of Anna has zero active tax abatements.
- Public Improvement Districts – In accordance with Texas Local Government Code Chapter 372, the City of Anna may create a public improvement district to finance the cost of qualified public improvements that confer a special benefit for a definable part of the city or its extraterritorial jurisdiction. The City of Anna has one active PIDs.
- Chapter 380 Agreements - The City may enter into various agreements under Chapter 380 of the Texas Local Government Code to stimulate economic development.
- Triple Freeport Exemption – The City of Anna, Anna Independent School District, and Collin County offer a business personal property tax exemption on inventory that is held within the State of Texas for 175 days or less from the date they were manufactured in, acquired in or transported into the State. Freeport Exemption Application forms must be submitted no later than April 30 of each year to the Central Appraisal District of Collin County.
- Grants – The City, EDC or CDC may provide a tax grant in an effort to encourage new investment and reinvestment in the city and/or provide a foundation which business may locate and expand their operations. The amount and duration of the grant may vary based on a determination by the City Council and/or the EDC or CDC Board.
- Fee Reductions / Waivers or Infrastructure Assistance – The City may reduce or waive fees or assist with infrastructure in order to spur development.
- Loans – The EDC or CDC may enter into a loan agreement with applicable businesses as determined by the EDC or CDC Board.
- Property/Sales Tax Rebates- The City and/or EDC and CDC may enter into an agreement to rebate property and/or sales taxes based on the scope of the project.
TAX ABATEMENTS AND REIMBURSEMENTS
For more information on Economic Development in Anna, visit the Economic Development Corporation/Community Development Corporation Website.
The Texas Comptroller Economic Development Search Tool allows users to view the Anna CDC and Anna EDC financial reports submitted to the State of Texas.
GASB Statement No. 77 Tax Abatement Disclosure provides guidance regarding the disclosure of taxes forgone in governmental financial statements.