Tax Abatement
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A Tax Abatement is a temporary tax reduction or tax subsidy granted by a government unit.
- AKA: Tax Holiday, Abatement.
- Context:
- It can be applied to property tax, motor vehicle excise, a fee, charge, or special assessment.
- It can be granted by application of the person seeking the abatement.
- Example(s):
- Counter-Example(s):
- See: Tax Reduction, Tax Subsidy, Tax Revenue, Value Added Tax, Corporate Tax, Foreign Direct Investment, Legal Holidays by State.
References
2016a
- (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/Tax_holiday Retrieved:2016-10-5.
- A tax holiday is a temporary reduction or elimination of a tax. It is synonymous with tax abatement, tax subsidy or tax reduction. Governments usually create tax holidays as incentives for business investment. Tax holidays have been granted by governments at national, sub-national, and local levels, and have included income, property, sales, VAT, and other taxes. Some tax holidays are extra-statutory concessions, where governing bodies grant a reduction in tax that is not necessarily authorized within the law. In developing countries, governments sometimes reduce or eliminate corporate taxes for the purpose of attracting foreign direct investment or stimulating growth in selected industries.
A tax holiday may be granted to particular activities,in particular to develop a given area of business, or to particular taxpayers. Researchers found that on sales tax holidays, households increase the quantities of clothing and shoes bought by over 49% and 45%, respectively, relative to what they buy on average
- A tax holiday is a temporary reduction or elimination of a tax. It is synonymous with tax abatement, tax subsidy or tax reduction. Governments usually create tax holidays as incentives for business investment. Tax holidays have been granted by governments at national, sub-national, and local levels, and have included income, property, sales, VAT, and other taxes. Some tax holidays are extra-statutory concessions, where governing bodies grant a reduction in tax that is not necessarily authorized within the law. In developing countries, governments sometimes reduce or eliminate corporate taxes for the purpose of attracting foreign direct investment or stimulating growth in selected industries.
2016b
- (City Council of Barnstable, 2016b) ⇒ Town of Barnstable. (2016). “Town of Barnstable Adopted Operating Budget - 2017."
- QUOTE: Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit. (See Commitment).
2016c
- (City Council of Cambridge, 2016b) ⇒ City Council of Cambridge, MA. (2016). “Annual Budget 2016-2017 Adopted by the City Council, Cambridge, Massachusetts."
- ABATEMENT. A complete or partial cancellation of a tax levy imposed by a governmental unit. Administered by the local board of assessors.
2008
- (MA DoR, 2008) ⇒ Massachussets DoR. (2008). “Municipal Finance Glossary.” Massachussets Department of Revenue - Division of Local Services
- QUOTE: Abatement – A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit. (See Commitment)