Thread by @jcrossphd

THREAD. "just as the tax breaks expired in 2018, Motiva suddenly announced that it was contesting the refinery’s appraised value of $3.5B, saying the structure & its contents were actually worth just $1.5B. Motiva sued..." #Chapter313 #txlege #txed texasobserver.org/texas-largest-…

"Thanks to a team of high-powered lawyers & seemingly endless supply of $ for legal fees, Motiva forced the outmatched appraisal district to settle, saving tens of millions of $ in property taxes in one fell swoop & leaving Port Arthur ISD in crisis" #Chapter313 #txlege #txed

"Port Arthur ISD serves 8,000 predominantly Black & Hispanic and low-income students...The Motiva refinery alone accounts for roughly half its tax base." #Chapter313 #txlege #txed

"Critics say that the program amounts to a wasteful trough for costly corporate tax subsidies that starves the state of revenue that could be used to fund public schools, & the program will soon cost taxpayers more than $1B a year" #Chapter313 #txlege #txed

"Texas Observer analyzed 71 projects: Almost all 55 wind projects overestimated what their projects’ value would be once tax breaks expired." #Chapter313 #txlege #txed

"Texas Observer analyzed 71 projects: 12 of 16 manufacturing projects also undershot their projections. While it’s normal for industrial props to decline in value as facilities age, projects w/ #Chapter313 deals have knack for losing much more value than expected." #txlege #txed

"The appraisal office reached a settlement with Motiva that knocked its taxable value for 2018 & 2019 down to about $1.5B, roughly one-third less than what Motiva had initially projected would return to the rolls, according to a 2010 filing." #Chapter313 #txlege #txed

😵 "To add insult to injury, the settlement forced Port Arthur ISD to refund Motiva $8.5M of property taxes it had already allocated to school programs." #Chapter313 #txlege #txed

"Projects that are still years away from their tax breaks ending—some as far out as 2035—tend to offer up rosy estimates of the value they will bring back to the rolls. The program’s track record makes those claims dubious, though." #Chapter313 #txlege #txed

“You’re giving up tax dollars today in hopes of collecting tax dollars in year 11. It’s hard to make these numbers work.” #depreciation #flawedprojections #Chapter313 #txlege #txed

"After reaching peak value of $230M in 2007 before falling to ~ $125M in the final year of the abatement period. On its way back to the tax rolls, Sabina sued the county appraiser & reached a settlement that lowered its value all the way down to $58M." #Chapter313 #txlege #txed

"There are few guardrails in the Chapter 313 program to ensure that projects actually pay off for the state." #Chapter313 #txlege #txed
Where's the accountability we demand of our teachers & schools?!

"In 2020, Motiva challenged its appraisal again & got value further reduced to just $1B. The district expects the company to challenge value again this year."

We're giving these companies taxpayer dollars w/ few guardrails or accountability. #Chapter313 #txlege #txed

Thank you to @by_jmiller for this excellent reporting in the @TexasObserver! #Chapter313 #txlege #txed