This coming week, Superintendent Dr. Green is providing an opportunity for no more than 3 board members at a time to attend mini-sessions with the administration and Legal for the purpose of providing details of TADS and the Doraville IGA.
What is a TAD?
A Tax Allocation District (TAD) is a financing mechanism in Georgia that allows a community to “allocate” increases in taxes generated by new development within a defined area to pay for capital improvements to that area. No taxes collected from any other area or resident can be used to fund any improvement within the TAD. Only incremental tax revenues from the TAD site can be used in the TAD area.
- County and School District taxes can also be allocated IF those jurisdictions consent to participate in the TAD
- TAD funds can be used for roads, infrastructure, parking structures and other public improvements to attract/support development
Creating a TAD does not directly impact existing taxpayers:
- Existing property owners within and outside the TAD are taxed in the same manner as if the TAD did not exist
- All taxes from properties within the TAD continue to be collected
- Taxing authorities involved in the TAD (City, County and school district) continue collect taxes at the level that existed when the TAD was created
How Does A TAD Work?
Future property taxes paid by new development and future value growth within the TAD are allocated to a special fund to pay for eligible costs–i.e. increased tax revenue generated by the TAD is spent in the TAD.
TAD funds can be used to pay debt service, match other funding or spend on a pay-as-you-go basis.
No existing taxpayers are affected and no taxes are abated – revenue to repay costs comes from new taxes on new investment.
Only taxes on real estate are typically pledged in a TAD. Taxes on personal property, sales taxes, business licenses and other local government revenues are not affected