The Loophole. Local Governments Required Accounting Reporting of Tax Abatement Revenue Losses.

The Accounting Rule that requires local governmental entities to report revenue losses from tax abatement agreements:  Governmental Accounting Standards Board (GASB) Statement 77

What Does GASB 77 require: local governments must report their annual lost revenue due to tax abatement agreements

Is there a loophole? Yes, local governments can decide if the annual lost revenue is “material” 

What’s an example of a revenue loss from an abatement? Austinm NV reported a $4 loss from a state renewable energy program

Governing | Despite New Rules to Disclose Corporate Tax Breaks, Just Half of Local Governments Are