ANNOVA WANTS P.I. SCHOOLS TO FOREGO $195 MILLION

By Stefanie Herweck and Scott Nicol
The Lower Rio Grande Valley Sierra Club

On September 10 the Cameron County Commissioners Court considered a request from Annova LNG for a huge tax break.

But, in the face of growing community opposition to the proposed liquefied natural gas (LNG) export terminals, and public anger that Annova would try to avoid paying taxes, the commissioners tabled the tax break, putting it off until some unspecified future date.

Now Annova is asking the Point Isabel Independent School District for another, much larger tax giveaway that the school board will take up on Tuesday evening.

You wouldn’t know it from Annova’s Facebook page, where they are repeatedly posting a meme which reads, “Fact: we will pay our fair share in taxes.”

Here’s an actual fact: Annova LNG is aggressively seeking at least two separate tax breaks that could top out in excess of $220 million.

The tax break that Point Isabel ISD will consider is the largest. Governed by Chapter 313 of the Texas Economic Development Act, it’s actually administered by the Texas State Comptroller, but the school district has to sign off on it. If they do, Annova would be able to limit the assessed value of their facility when it comes to paying property taxes for the maintenance and operation of schools. If the state grants them an Appraised Value Limitation under Chapter 313, they would pay property taxes on their $2.9 billion LNG export terminal as if it were only worth $25 million.

That is less than one percent of the facility’s cost.

This would slash Annova’s school taxes by about $195 million over ten years. The state of Texas would then use your tax dollars to pay school districts for the estimated lost revenue.
So, why would the school district sign off on this giveaway?

In one of the most egregious cases of Texas tax laws skewed toward corporations, it’s actually legal for Annova to pay off Point Isabel ISD in exchange for their consent. They can make “Payments in Lieu of Taxes” far smaller than their would-be tax bill directly to the district. These payments amount to legal bribe money that can be used for anything the school board sees fit. It’s a recipe that encourages school boards to act against the best interests of their communities.

The tax break that Cameron County Commissioners voted to table last week is governed by Chapter 381 of the Local Government Code. The County’s summary of the deal only says that it is similar to a deal made with Tenaska, which waived 76 percent of property taxes for 10 years for their power generation station. Annova’s tax break, according to the summary, would add up to $25 million in lost revenue over 10 years.

To read the rest of the story, click on link: http://riograndeguardian.com/herweck-nicol-annova-lng-wants-us-to-pay-for-two-big-tax-breaks/