The Texas Economic Development Act (Chapter 313 of the Tax Code) provides for the extension of investment incentives to manufacturers and others through tax abatements. The law allows school districts to attract new taxable property development by offering a value limitation on the appraised value of the property for the maintenance and operations portion of the school district’s property tax.

One such deal dated, was reached August 1, 2019 between the Sinton Independent School District and Buffalo LLC. At issue is a facility for the manufacture of flat roll steel coils. According to the Texas Comptroller of Public Accounts, the estimated total gross tax benefit to the company resulting from this agreement amounts to $148,619,150 over a 10-year period. (i.e., an average of $14,861,951 per year), from 2022 through 2031.