Tax expenditures are special tax breaks that reduce tax liability for certain taxpayers. They are used by policymakers to promote economic development or provide tax relief. Common examples include sales tax exemptions for nonprofits and property tax breaks for seniors. These tax breaks are like government grants but provided through the tax code. Monitoring the value of these tax breaks is important as they reduce tax revenue and give special treatment to some taxpayers. A tax expenditure report helps local governments understand their taxing autonomy. In the US, there are many local governments, with some having more control over tax exemptions than others.