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GASB issues proposal on tax abatement disclosures

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Nov 03, 2014

The GASB has issued “Tax Abatement Disclosures,” an exposure draft of a proposed Statement under which state and local governments would be required to disclose “information about property and other tax abatement agreements.” The proposal is intended to “provide financial statement users with essential information” about tax abatement programs.

Specifically, the exposure draft would require state and local governments that currently have tax abatement programs in place to provide the following disclosures:

  • “General descriptive information, such as:
    • The tax being abated
    • Criteria that must be met for the taxpayer to be eligible for the abatement
    • Provisions for recapturing abated taxes
    • The types of commitments made by tax abatement recipients
  • Number of tax abatement agreements
  • Dollar amount of taxes abated
  • Other commitments made by a government, such as to build infrastructure assets.”

Comments on the proposal are due by January 30, 2015.

For more information, see the news release, exposure draft, tax abatement disclosures project page, GASB in Focus article, and related video by GASB Chair David A. Vaudt on the GASB’s Web site.

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