Houston City Council members passed an ordinance on Wednesday requiring companies that seek new tax breaks from the city to offer higher pay, better safety and more benefits to workers. The city uses property tax abatements to attract investment, encourage business investment and create jobs.
Councilmember Alejandra Salinas, who helped write the ordinance, said companies must provide prevailing or comparable wages to municipal workers, health insurance and apprenticeship programs to receive an abatement. She said city departments will enforce the rules through audits and inspections of company records, and companies must submit affidavits declaring the benefits and wages they provide.
The Mayor's Office of Economic Development is responsible for making sure tax-break deals are followed, and that will continue under the updated ordinance. ABC13 reviewed city records and found the city has awarded 21 tax breaks since 2004. ABC13 also found several instances in which the city extended deadlines after determining companies could not meet them. The ordinance applies only to abatements the city grants in the future.