The purpose of the District of Houston's tax exemption bylaws are to exempt properties specified in the bylaw from paying all or a portion of municipal property taxes. Properties owned by the municipality or other levels of government and used for public purposes are exempt from municipal property taxes under the Community Charter.
Other properties are generally exempted only for buildings and the land directly beneath the footprint of the building. However, it has been Council’s practice to also provide permissive tax exemptions to all of the land surrounding these types of properties.
In order for a property to be considered for exemption from taxes, the property must be eligible for an exemption under Division 6 of the Community Charter. Council of the District of Houston has adopted a Permissive Tax Exemption Policy and Application which outlines criteria and decisive factors for review of granting tax exemptions that will consistently be applied to all applications.
Council has established a revitalization tax exemption program to provide relief from certain municipal property taxes under section 226 of the Community Charter for major commercial and industrial investments and projects. The terms and conditions of the exemption can be found in the Revitalization Tax Exemption Bylaw.