Finance and Incentives

The Benbrook Economic Development Corporation (BEDC), the City of Benbrook, and the State of Texas offer a variety of incentives to assist qualifying new and expanding businesses:

HALF CENT SALES TAX AND INFRASTRUCTURE ASSISTANCE


In 1995, City of Benbrook voters approved the adoption of a half-cent economic development sales tax (Type B) to fund projects to increase economic activity with the City. The BEDC may pay for land, buildings, equipment, facilities, targeted infrastructure and improvements for development to spur commercial development and to enhance quality-of-life within the community. 
 

The Storefront Improvement Program is a 50% matching grant to assist in exterior beautification for qualified businesses.

RETAIL INCENTIVES


The State of Texas and the City of Benbrook currently do not have specific incentive programs for retail businesses. The City of Benbrook may provide sales tax rebates (known as Chapter 380 assistance) on a case-by-base basis to retail redevelopment and expansion by reimbursing the developers from sales tax funds collected from a specific area.

FREEPORT EXEMPTION


Companies in Benbrook that ship certain products out of Texas within 175 days can obtain a reduction in taxes by using the Freeport exemption. Companies in Benbrook are eligible for a double Freeport exemption from Tarrant County and the Fort Worth ISD. The City currently does not offer a Freeport exemption.

PROPERTY TAX ABATEMENT


Tax abatements are available to eligible businesses on a case-by-case basis. Tax abatements can lower property taxes on new plant and equipment expenditures for new and expanding companies for a period of up to 10 years. All or a portion of the increased taxes may be abated and after the expiration of the tax abatement agreement, the property is taxed at its full rate. The terms and conditions of tax abatement agreements are negotiated on a case-by-case basis following an economic impact analysis. Currently, there are no tax abatement agreements in Benbrook.

A myth regarding the use of tax abatement is that it REMOVES taxes from the tax rolls. In fact, all tax abatement projects continue to generate the same amount of taxes, if not more, than they did prior to being approved for the abatement. The taxes that are abated apply only to NEW capital investment in real and personal property and can never be applied toward the purchase of land or on existing plant and equipment to reduce the existing tax level.

The City of Benbrook can assist with new and redeveloping businesses by reducing or waiving building and application permit fees, on a case-by-case basis, as a financial incentive.

TAX INCREMENT FINANCING


Tax Increment Financing (TIF) is a tool that Benbrook can use to finance infrastructure improvements within a defined area. In areas designated as TIF districts, tax-base increased revenue from the “captured” tax base in the District is used to finance site improvements or other economic development costs.

The City of Benbrook has designated Tax Increment Finance Reinvestment Zone No. 1. The TIF Board serves as an advisory body to the City Council on projects to be included in the TIF Project Plan and makes recommendations on TIF financial matters. The TIF District will expire in November 2022 unless extended by the City Council.