What result does a "tax abatement" have on property taxes?

A tax abatement is a financial incentive that reduces or eliminates property taxes for a specific property or class of properties for a designated period. Typically utilized to encourage development, investment, or improvement in certain areas, tax abatements can provide significant savings for property owners during the abatement period, thus stimulating economic growth in the community.

In this context, the fact that the correct answer indicates a reduction or elimination of property taxes aligns perfectly with the primary function of a tax abatement. This temporary tax relief serves to lessen the financial burden on property owners, promoting development or investment, which can ultimately lead to increased property values and revitalization of an area once the abatement period concludes.

Other options do not accurately reflect the nature and purpose of tax abatements. For instance, tax abatement does not increase property taxes, nor does it establish new tax rates for commercial properties. Additionally, while an abatement may temporarily eliminate property taxes, it is not designed to do so permanently, as that would undermine the municipality's ability to generate revenue for public services over the long term.