- NY Credits : 1.0
- TX Credits : 1.0
Lee Ann Watters, CPA will discuss some of the distinguishing features of tax abatements, and how they are used by local governments to encourage economic development. She will then examine how GASB Statement 77 requires governments that enter into tax abatement agreements to disclose a deeper level of detail in terms of major programs and aggregation. Lee Ann will close the segment with a discussion of how GASB Statement 77 seeks to provide governmental financial statement users the ability to quantify and compare the revenue losses caused by economic development tax breaks, in an effort to evaluate the effectiveness of such programs.
Upon completion of GASB 77 and Tax Abatements, the user should be able to:
recognize what a tax abatement is and how local governments use these types of agreements,
identify what exposure draft commenters desired for GASB 77 and when the Statement will be effective, and
recognize when a government can collect the taxes that were intended to be abated in an agreement.