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Transparency: Economic Development

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Logo for the Texas Comptroller’s Transparency Star program in the ‘Economic Development’ category. The emblem features a circular arc that sweeps around a five‑point star in the upper right, all rendered in gradient shades of green. Centered text reads ‘Transparency Star,’ with ‘Texas Comptroller’ and ‘Economic Development’ displayed below.

Economic Development

The City of Round Rock is committed to transparency.  The goal of the City of Round Rock is to be an open government in all areas.  The City is increasing its efforts in transparency as it relates to economic development programs and incentives supported by our tax dollars that are designed to attract industry and investment, create jobs and otherwise grow the economy. 

For more information on the Texas Comptroller’s efforts to encourage transparency among local governments, please visit their website at https://comptroller.texas.gov/transparency/.

The City of Round Rock enters into economic development agreements to promote development and redevelopment within the City, generate additional sales tax revenues, enhance our property tax base and improve the quality of life for our citizens.  These programs abate or rebate property taxes, hotel occupancy tax, and sales tax, include economic incentive payments, and/or reductions in fees that are not tied to taxes.  The City’s economic development agreements are authorized under Chapter 380 of the Texas Local Government Code.

The City negotiates property tax abatement agreements and property tax, sales tax, and HOT tax rebates on an individual basis.  Tax abatements are limited to ten (10) years in length.  The City has an abatement recapture clause in all tax abatement agreements in the event that the recipient does not fulfill the requirements of the agreement.  The tax rebate program is for a period of greater than 10 years, and taxes paid to the City are reimbursed back to the owner. As of FY 2025, there are no active tax abatement agreements with the City.

 

Tax Abatement and Rebate Summary

The summary table provided below is from the most recently completed fiscal year – 2025.

The image displays a light blue table titled “Economic Development Summary Table FY 25.” The table lists several metrics related to tax abatements, rebates, job creation, and capital investment. Each row includes a description on the left and a value on the right, some prefixed with a dollar sign. Table Content: • Number of tax abatements and rebates granted in FY 25: 1 • Number of existing tax abatements or rebates in FY 25: 3 • Estimated taxes abated or rebated in year one of agreements as total: $629,264 • Estimated taxes abated or rebated in year one of agreements per capita*: $4.51 • Estimated taxes abated or rebated for life of agreements: $409,532,950 • Estimated taxes abated or rebated for life of agreements per capita: $2,937.07 • Number of jobs created/retained by agreements to date: 11,737 • Total capital investment received for agreements to date: $372,650,000 A footnote at the bottom states: *Based on population as of September 2025: 139,436
A bar chart with an upward arrow and a dollar sign represents $372,650,000 in capital investments received. Next to it, a magnifying glass highlights 11,737 Jobs Created with people icons in the background.

City of Round Rock’s Current Economic Development Agreements

Bar chart showing tax abatements/rebates and incentives from FY 2021 to FY 2025. Tax abatements/rebates (blue) and incentives (green) both rise over time, with incentives peaking at $4.3M in FY 2025.
Bar chart showing the number of tax abatements/rebates and incentives granted from FY 2021 to FY 2025. Incentives peak at 12 in FY 2024. Tax abatements/rebates are consistently lower, ranging from 4 to 7 per year.

Texas Comptroller’s Local Economic Development Programs Information

Texas Comptroller’s Economic Development Search Tool

Chapter 380 of Texas Local Government Code

GASB Statement 77 – Tax Abatement

City Council Contact Information

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