Definition - What does Abatement mean?

The term "abatement" may be defined as the reduction of the amount payable as tax. This reduction may come in the form of a rebate, tax cut, or adjustment from previously paid taxes. Governments usually offer tax abatements to new businesses to attract them to a certain market.

Justipedia explains Abatement

Abatement also refers to the reduction of the amount owed as debts by all creditors, in case the value of all the assets do not total as the full amount owed. The term may also mean the eradication of a problem that is against private or public policies, or one that may put others in danger. For example, a municipality authority may issue a notice to a landlord whose backyard may catch fire due to the presence of certain types of chemicals there.

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