The Governmental Accounting Standards Board (GASB), has issued final guidance on Statement No. 77, Tax Abatement Disclosures, which, for the first time, requires state and local governments to disclose how tax abatements impact that government's finances.
Governments often agree to abate or reduce the taxes of individuals and entities to promote economic development, job growth, redevelopment of blighted or underdeveloped areas, and other actions that are beneficial to the government or its citizens.
Many state and local governments have tax abatement programs in place and the effects of tax abatements on their financial health and ability to raise revenue can be substantial. Likely this will only effect tribal governments in narrow circumstances.
For questions or comments please contact Jennifer Parisien at Jennifer@nafoa.org or (202) 558-8040.