Question: This year Company LI built a light industrial facility in
This year, Company LI built a light industrial facility in County G. The assessed property tax value of the facility is $20 million. To convince Company LI to locate within its jurisdiction, the county abated its 4 percent property tax for the year. Be-cause of the local economic boom created by the new facility, the aggregate assessed value of County G’s property tax base (including the LI facility) increased by $23 million. Compute the net effect on County G’s current year tax revenue from the abatement.
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