While most Governmental Accounting Standards Board (GASB) Statements only impact cities which are required to prepare financial statements, GASB Statement No. 77 (GASB 77), Tax Abatements, is an exception. Every city which makes payments during the year ending June 30, on tax increment financing (TIF) development agreements, rebates or grants will play an important role in implementing GASB 77.
GASB 77 requires governments to disclose in the notes to their financial statements the amount of revenues they promise to forgo through agreements with individuals or entities which promise to take specific actions after the agreements have been entered into that contribute to economic development or otherwise benefit the governments or the citizens of those governments. It also requires governments to disclose in the notes to their financial statements the portion of revenues which the government would have otherwise received that other governments have promised to forgo through their tax abatement agreements.