Government Accounting Lingo: Lesson 3
by State Data Lab’s Dannie Mahoney
I know I have had you waiting and you’ve been very patient about Lesson 3 being published. It may just be time to end lessons like this (after this one) and move onto something more complex than definitions, like subjects.
I am about to discuss tax abatement. Before you continue reading, it may be easier to understand if you first make yourself a strong drink. The information you are about to read, pray tell, is not for the faint of heart.
Tax Abatement: a reduction of taxes for a certain period of time in exchange for performing an agreed upon task. It is kind of like paying someone to do something, however, they get paid before they do it, which is weird. Corporations are given reductions in taxes by the local government with the promise that they will create jobs in the area. But nobody makes sure they actually do that, because they don’t have to.
The government also doesn’t have to report to the public that it gave a corporation a tax break, or for how much, or what it was for. But that may very soon change….if you want to read more about it by me click here.
