What is a property tax abatement?

A property tax abatement is a decrease in the amount of property taxes owed by property owners in Arizona. It is a reduction or elimination of taxes for a certain period and is usually offered by local governments to encourage the development of new businesses or to help existing businesses stay in the area. The amount of a property tax abatement is based on the type of property and the assessed value of the property. For example, if the assessed value of a residential property is $200,000, the owner could receive a 20% abatement, meaning the owner would only pay $160,000 in property taxes. Property tax abatements are also sometimes given to businesses for making improvements or expansions. This could include things like building a new factory, installing new equipment, or making changes to existing facilities. The abatement is usually for a specific period, often between three and fifteen years. Property tax abatements are also common in areas with high crime rates, or areas in need of economic revitalization. The abatement is usually given as an incentive to encourage businesses to stay in the area and improve the local economy. In Arizona, property tax abatements are granted by local governments. If a business owner believes they qualify for a property tax abatement, they must submit an application to the local government for consideration. The local government will review the application and determine if the business meets the requirements to receive an abatement.

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What is a property tax abatement?

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