Georgia Tax Allocation Districts (TAD)

Georgia Department of Community Affairs

Program Type:

Tax Increment Financing

Eligible Geography:

Georgia

Program URL:

https://www.dca.ga.gov/sites/default/files/economic_development_financing_packet.pdf

Summary:

In Georgia, the use of tax allocation districts by eligible local governments is authorized by Georgia Statute O.C.G.A. ยง 36-44-8. Tax Allocation Districts or TADs, often called Tax Increment Financing (TIF) in other states, are a popular mechanism for revitalizing blighted or underutilized areas such as brownfields, declining commercial corridors and industrial sites. The process involves designating a Tax Allocation District, establishing its current tax base floor and then dedicating future taxes over and above that floor for a given period of time to pay the costs (often but not always through issuing bonds) of the infrastructure, buildings or other improvements needed to spur new, higher density development. TAD funds may be used for a wide range of development activities. Cities, counties and school systems may all decide independently whether to participate in a TAD. City or County participation in a TAD requires a jurisdiction-wide referendum. TADs may be administered by local governments, DDAs, Housing Authorities or Redevelopment Agencies. To be implemented:
1) A member of the General Assembly must introduce local legislation that authorizes the use of the Georgia
Redevelopment Powers Law.
2) If the local legislation passes, then local voters must hold a special referendum for approval.
3) A local redevelopment agency is created by resolution of the City or County or both in the case of a multijurisdictional TAD boundary.

Eligible Recipients:

Local Government; For-Profit Business

Eligible Recipients Detail:

Tax Allocation Districts (TAD) may be administered by a local government, district development association, housing authority, or redevelopment agency. Cities, counties, and school districts may independently decide whether or not to participate in the TAD.

Eligible Purpose:

General Infrastructure; Last Mile Infrastructure; Building Infrastructure; Anchor Institution Infrastructure

Eligible Purpose Detail:

TAD funds may be used for a wide range of development activities. Renovate, construct, preserve, restore expand or demolish buildings for business, commercial, industrial,
government, education, public or private housing, social activity, governmental services; historic properties; green spaces; mass transit and pedestrian facilities; telecommunications infrastructure; water and sewer lines; streets; sidewalks; parking facilities; public parks; building construction; building rehabilitation, housing, and land assembly.

Excluded Programs:

X

Other Eligibility Criteria:

The entity administering the TAD must identify a specific area in need of redevelopment that meets the criteria for designation. A determination of blight is required. The public improvements needed to help the area attract new private development must be identified with a projected cost estimate. A Tax Allocation District may be created and approved in public hearings. City or county participation in a TAD requires a jurisdiction-wide special referendum.

Funding Match/Terms:

All TAD revenues set aside may not cumulatively exceed 10% of the local tax base.

Source:

https://www.cdfa.net/cdfa/tifmap.nsf/index.html?open&state=GA