The purpose of the Fannin County Abatement Program is to encourage growth and the establishment of industrial and commercial enterprises which would, in turn, increase employment in Fannin County.

"I advised the Fannin County Commissioners Court that an abatement program is like a magnet and their program will attract businesses and growth," said Fannin County Appraisal District Chief Appraiser Mike Shannon. 

By fine-tuning that abatement program, Mr. Shannon adds, a county can selectively encourage and attract specific businesses. 

For a business located in an unincorporated area and requesting tax abatement, the first step would be to contact their elected county commissioner or county judge for information they have regarding qualifications and the application process.  Successful applicants will benefit from relief once the proper entity determines the amount of the abatement.  The governing body of that taxing unit would, through resolution, direct the appraisal district to make appropriate adjustments in regard to their tax levy. 

For example, for businesses within the Bonham city limits, the initial move would be to contact the city council member representing their ward in order to obtain information about qualifications and the application process.  Since the City of Bonham would be responsible for the costs of supplying services to the business within their jurisdiction, the city would determine the amount of abatement and then recommend that determination to the county.  Once the abatement is finalized, Fannin County Appraisal District (FCAD) would be notified to make the proper adjustments.

School districts, however, are no longer eligible by law to enter into abatement agreements. 

"I have no problem assisting a property owner through this process," stated Shannon, "but our action as an appraisal district falls solely upon the determination of the appropriate taxing unit and their resolution."

Under strictly enforced guidelines, appraisal districts are required to set market value as determined by mass process---comparing a large number of similar properties.

Once each year, the Comptroller of Public Accounts scrutinizes the accuracy of each appraisal district in the state by randomly selecting several hundred properties and verifying whether or not current local appraisals are between 95% and 105% of the actual market value as determined by the Comptroller's employees.

Any finding higher than 105% would indicate an over-appraisal of property, while the Comptroller also guards against under-appraisals that open the door for counties to obtain excessive state relief in education.

In 2008, the Fannin County Appraisal District graded out at 101%, or 1% higher than the actual market value set by the Comptroller's appraisers.  In 2007, FCAD graded out at 98%, which favored property owners.