The resulting effect of the tax breaks is to increase the value of the project to
the investors. If these breaks, along with other incentives, bring the value of
the project up to the cost of developing the hotel, then the project becomes
feasible. Breaks on TOTs, property taxes and sales taxes are among the
commonly used incentives. As we will see later in the examples, there are
a variety of ways to structure these tax breaks. To the extent that these tax
streams would not be available if the project was never developed, it is
possible to have a net gain in tax revenue if communities offer such breaks
to developers.