TycheDataGuide:TaxAbatementData
What is Tax Abatement Data?
We use the term tax abatement data to mean any data that describes tax avoidance and voluntary tax compliance, through arrangements that are a function of an entity type (e.g. a non-profit organization) or an arrangement that an entity makes (e.g. incentives to build an organization or infrastructure in a particular area).
Tax abatement data can refer to:
- tax avoidance as a part of a development-related initiative
- voluntary payments in lieu of taxes from a government entity
- voluntary payments in lieu of taxes from a non-profit
Put simply, property and other taxes are typically governed using a formula that looks at a property's value and comparison properties; tax abatement data represents any scenario where a property owner does not have to pay according to the basic formula of the area.
Where does it come from?
Tax abatement data could be maintained and distributed by several different sources. A tax assessment department for a county or town could understand the difference between the value of a property and its tax burden and the amount that an owner actually has to pay. A local industrial development agency (IDA) or similar economic development organization could maintain this data for any properties for which a development for tax relief arrangement has been made.
Some property-owning entities, both non-profits and governments, that own tax exempt land may make voluntary payments in lieu of taxes. This data may be available through a city or county's Treasurers Office.
What are the primary and secondary data elements?
- Property identifier(s)
- Owners - both individuals and incorporated entities
- Addresses - of both property and owners
- Tax abatement value over time - these are typically schedules that state the tax avoidance, year-by-year. Tax avoidance may be measured in actual dollars (or other currency) or may be measured in percentages (percentage of taxes that may be avoided).
- Voluntary payments and their schedules
What are questions you can answer with tax abatement data?
- What properties receive tax abatements?
- What property owners receive tax abatements?
- Which property owners make voluntary tax payments?
- What are tax abatement financial arrangements and are they standardized approaches?
- What is the value of tax abatements in aggregate?
Tips and tricks for using tax abatement data
- Authorities that are involved in tax abatement strategies may have codified their approaches to when and how much they offer. Ask for any documents that outline common strategies