Harris County Commissioners approve tax relief for Amazon

Online retailer Amazon already operates several distribution centers in the state, including one in Houston. Online retailer Amazon already operates several distribution centers in the state, including one in Houston. Photo: Justin Sullivan, Staff Photo: Justin Sullivan, Staff Image 1 of / 30 Caption Close Harris County Commissioners approve tax relief for Amazon 1 / 30 Back to Gallery

The Harris County Commissioners Court on Tuesday approved a tax relief plan for an Amazon facility in northwest Houston.

The online retail giant requested a tax abatement that would lower its taxes to 65 percent for 10 years for the company to build a facility estimated to bring 1,000 jobs to northwest Houston.

According to county documents, Amazon plans to build an 855,000-square-foot warehouse at the 970-acre Pinto Business Park at the southwest corner of Interstate 45 North and Beltway 8.

The $136 million Amazon fulfillment center would include warehouse and distribution space meant to serve the region surrounding Harris County. At least 80 percent of inventory is expected to be sent at least 100 miles outside the county, according to county records. The fulfillment center would be separate from Amazon's Houston Prime Now facility in Humble.

Amazon had alternative sites with lower tax rates in mind at its facilities in Haslet and San Marcos and a third out-of-state location, in case the request for tax abatement was denied.

The court held a public hearing on the matter before making its decision Tuesday morning. No one spoke for or against the tax abatement.

A report submitted to commissioners estimated the fulfillment center would have annual economic impact of $172.9 million and the county would forgo $179,073 each year in taxes. The report also estimates Amazon would pay $393,314 in annual taxes on a completed project, compared with the $61,012 the property at Pinto Business Park is earning now.