Title
Tax Incentive Projects and Governmental Accounting Standards Board Statement 77 Information
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Issue/Request:
The presentation will cover the Tax Incentive projects known as Section 100, Section 353, LCRA and TIF Projects, as well as the requirements of the new GASB Statement 77 regarding Tax Abatement Disclosures.
Key Issues:
The Governmental Accounting Standards Board has issued its new Statement 77 that requires the financial disclosure of information regarding tax abatements granted by the City's tax incentive programs to Developers. This presentation will discuss the tax incentive programs of the City and elaborate on which programs will require the new disclosure information and which programs do not require disclosure of information in the financial statements.
Background:
The City has for many years provided Developers with various tax incentive alternatives to enhance the viability of proposed developments. These programs have allowed property taxes to be abated in return for the construction of projects that would be benefical to the city's development. Since the tax abatement of projects reduces the current revenues of the City, the Governmental Accounting Standards Board (GASB) issued Statement 77, which requires the disclosure of tax abatement amounts for various tax incentive programs. The intent of the Standard is to allow the users of the City's financial statements to know how much of current revenue has been abated, and, is therefore not available to provide other City services.
Impact/Analysis:
This presentation will cover four tax incentive programs used by the City to encourage development of businesses and infrastructure of the City, and, indicate which programs are subject to the requirements for disclosure of information by Statement 77.
Tax Increment Financing Districts (TIFs) provide for the segregation of property taxes and Economic Activity Taxes (50%) to be used to reimbuse developers, or the City, for costs rel...
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