A change in guidelines by the Government Accounting Standards Board (GASB) will, for the first time, provide a way to evaluate the effectiveness of tax incentives in stimulating economic development, The Toledo Blade reports. Previously, “states, cities, and other government units haven’t been directed to uniformly report the value attached to the various tax incentives, abatements, and financing deals they agree to as a way of stimulating economic growth,” according to the article. The GASB’s new guidelines, which took effect in 2016, instructed governments to include this information in their annual reports. Watchdog groups praised the change “as an important precursor to debating whether such incentives are a good investment.” Zach Schiller, director of research for Policy Matters Ohio, said, “[b]efore you get to the question of whether [taxpayers are] getting their money’s worth, you have to know how much is being spent.” For more, read the full article.
New reporting rules will help evaluate effectiveness of tax incentives
