What does 'abatements' refer to in property tax calculations?

Abatements refer to a reduction or deduction from the taxable value of a property. When an abatement is applied, it lowers the amount of property taxes that the owner is required to pay. This can occur for various reasons, including incentives for renovations, improvements, or to encourage investment in specific areas. By decreasing the taxable value, the financial burden on property owners is eased, often fostering economic development.

In contrast, an increase in assessed value refers to a rise in the estimated value of a property, which could lead to higher tax liabilities. Similarly, a reduction in market value is a reflection of the property's worth in the market, but does not directly impact the calculation of taxes as an abatement does. Lastly, an addition to total tax due would indicate an increase in financial obligation rather than a reduction, and this concept diverges from the definition and purpose of abatements altogether.