Municipalities often encourage development because more commercial business in a town means more revenue. one way they do this is by creating special taxing districts to lure businesses into an area. these special taxing districts give the business a set period of time in which they will pay less property tax.

Many states work hard to lure businesses and entice them to stay.  As an example is Texas who has attracted many corporate relocations because of low taxes. It is the second-biggest state economy in the United States. Texas doesn't have a corporate income tax, state property taxes or individual income taxes making it very attractive for business. Some states compete for the most favorable tax atmosphere. Georgia eliminated the state's sales tax on energy use in manufacturing to bring new growth to that industry and a real revival in manufacturing as a result, he said.

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