ST. LOUIS (AP) – An annual financial report for St. Louis says the city missed out on nearly $17 million in revenue during the last fiscal year because of property tax breaks meant to stimulate development.
The St. Louis Post-Dispatch reports that the annual assessment produced by the city comptroller’s office quantified the value of the tax breaks. The report discloses the value of commonly used tax cuts in order to comply with new government accounting standards.
The tax breaks freeze real estate values at their current level for about a decade so developers don’t have to pay property taxes on the value of improvements to the property.
The comptroller’s office says the $17 million in forgone revenue includes taxes that could’ve gone to other jurisdictions like public school districts. But economic development officials say the tax breaks help revitalize distressed properties and attract new residents.
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