Does the abatement of taxes on improvements in an enterprise zone affect the tax rate?
Yes, however in most cases the effect will be marginal. Tax rates depend on the levy (amount of tax revenue the local government is raising) and the size of the tax base (total equalized assessed valuation of the district less homestead exemptions, plus the value of any state assessed property). Under normal circumstances, the tax rate for a district is calculated by dividing the district’s tax levy by its tax base. The greater the tax base, the lower the rate needed to generate the amount of the levy.
