City of Orange Incentives

Overview of the Orange Economic Development Corporation

The City of Orange Economic Development Corporation operates within the framework of Type B sales tax funding.

In the municipality of Orange, a sales tax rate of 8.25% is applied to all taxable transactions. Notably, 0.5% of this total is allocated to the Orange Economic Development Corporation, specifically designated for the enhancement of infrastructure projects within the city. These projects encompass both new endeavors and expansions of existing projects within the city limits.

Businesses interested in understanding the incentive mechanisms provided by this funding avenue are encouraged to directly engage with the Economic Development Corporation (EDC) personnel. These incentives operate on a reimbursement basis. It is crucial for interested parties to initiate communication with EDC staff prior to beginning their project. This initial contact enables a comprehensive exploration of the available incentives, catering to both new entrants and established businesses within the City of Orange.

For further inquiries or to explore potential collaborations, businesses are encouraged to contact the staff at the Economic Development Corporation.

Type 4B Sales Tax Funds

The Type B sales tax may be used for any project eligible under Type A rules and several other project types, including quality of life improvements. Type B corporations may pay for land, buildings, equipment, facilities, targeted infrastructure and improvements for:

• professional and amateur sports and athletic facilities, tourism and entertainment facilities, convention facilities and public parks;
• related store, restaurant, concession, parking and transportation facilities;
• related street, water and sewer facilities; and
• affordable housing.

To promote and develop new and expanded business enterprises that create or retain primary jobs, a Type B EDC may fund:

• public safety facilities;
• recycling facilities;
• streets, roads, drainage and related improvements;
• demolition of existing structures;
• general municipally owned improvements; and
• maintenance and operating costs associated with projects.

Type B EDCs also may seek voter approval to spend Type B sales tax funds for a water supply, water conservation program or cleanup of contaminated property.

Exceptions for Small Cities and Landlocked Communities

Type B EDCs created by cities with a population of 20,000 or less and those classified as landlocked communities may use sales tax proceeds to fund projects that promote new or expanded business development that do not create or retain primary jobs. A landlocked community must be located in either Harris or Dallas counties and have less than 100 acres within its city limits and extraterritorial jurisdiction zoned for manufacturing or industrial facilities.

Disclaimer

This information should not be construed as, and is not a substitute for, legal advice.

Cities are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.