Office of the Superintendent of Schools
Office of Finance and Operations
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Approval Of Agreements With Dixie Cullen Interests, Inc., For Foreign Trade Zone Status And Payments In Lieu Of Taxes
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The purpose of this item is to authorize the Houston Independent School District (HISD) to enter into foreign trade zone agreements with Dixie Cullen Interests, Inc., for the payment of ad valorem taxes.
Dixie Cullen Interests, Inc., has requested the Port of Houston Authority to approve three foreign trade subzones for that company's property within HISD boundaries. In order for such subzone status to be granted, the Port of Houston Authority requires that governmental entities submit a letter of approval for the subzone status. The effect of foreign trade subzone status is a federal exemption for local property taxes on inventory and certain other personal property in the subzone.
Dixie Cullen Interests, Inc., has agreed to pay HISD the money which HISD would otherwise have collected on local property taxes in consideration for HISD's approval of the foreign trade subzone status. This will allow the company to realize certain federal tax customs and duties benefits by virtue of subzone status and still allow governmental entities to be paid the ad valorem taxes which would be otherwise exempt from property taxation.
Harris County, which is also affected by the subzone status, is also considering entering into agreements with Dixie Cullen Interests, Inc. Approval by the taxing entities would allow the company to move forward with its subzone status.
A resolution authorizing HISD to move forward with discussions with Dixie Cullen Interests, Inc., regarding the submission of a letter of non-objection to the Port of Houston Authority is included as an attachment and is on file in Board Services. The submission of a letter of non-objection is conditioned upon Dixie Cullen Interests, Inc., entering into a satisfactory agreement with HISD for the payment of ad ...
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