Title
Resolution - A Resolution Authorizing the City of Mansfield, Texas to Enter into a Chapter 380 Agreement with First Texas Homes, Inc. for the Purpose of Promoting Economic Development within the City of Mansfield, Texas; and Approving Other Matters Related Thereto
Requested Action
The City Council approve a resolution authorizing the city to enter into a 380 Agreement with First Texas Homes, Inc. for the purposes reallocating sales tax revenue to the city of Mansfield, Texas which is currently being paid outside the city of Mansfield, Texas.
Recommendation
Staff recommends the approval of the Resolution.
Description/History
First Texas Homes, Inc. approached the city with an offer to partner with the city in the reallocation of sales tax it pays on building materials purchased. First Texas Homes, Inc. currently pays sales tax at the location it purchases building materials. There is a rule/law that allows First Texas Homes, Inc. to elect how they pay sales tax if they assume full responsibility for reporting and paying sales tax to the Texas Comptroller’s Office. The rule is Texas Rule 3.288 of the Texas administrative Code. First Texas Homes, Inc. has proposed to the City that it will assume full responsibility of paying and reporting the sales tax that they are required to pay under Rule 3.288 and in so doing the city will receive sales tax on building materials that are being used in the city of Mansfield, Texas. The city is currently not receiving sales tax revenue on these purchased materials; it is being paid in other cities where the materials are being purchased.
Justification
In return for the partnership, the city will receive 60% of all sales tax revenue on the materials used in the city of Mansfield, Texas and First Texas Homes, Inc. will receive the remaining 40% in the form of a grant. There is no cost to the city of Mansfield, Texas with the exception of the administrative expense in disbursing the granted funds to First Texas Hom...
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