ity Council Member Don Zimmerman has proposed that Council cut by 50 percent payments to companies that have Chapter 380 agreements with the city, as a way to “reduce the tax burden by over $6.8 million without cutting city services.”
Zimmerman’s message as posted on the Council Message Board states, “This would just be for FY 2015-16 and would not impact future years. However, I would be open to reducing the Chapter 380 agreements by 100% and make that change the policy moving forward.”
Over the years, the city has reached agreements that mostly involve abating property tax payments from businesses moving to Austin in return for investment in the city, a promise of jobs, use of local contractors and other benefits that Council believed were desirable. There are currently seven active Chapter 380 agreements, named after the state law that allows for creation of such agreements. Those agreements are with the following companies: Samsung, Apple, VISA, HID Global, Athenahealth, Advisory Board Company and Hanger.