Georgia is caught up in
Obama-land where you spend and borrow your way to prosperity. It is a
public/private partnership where developers borrow and put it on the taxpayers’
credit card. Despite the bankruptcy
track record of other cities and counties, we forge ahead into debt created to
feed big political donors.
Cities and counties have
been busy lobbying their state legislatures for advantages for themselves and
their supporters. Atlanta has long been
a Developers town and the Atlanta suburbs have been included. The winners are land speculators, land
developers and construction companies.
They have total control over our school boards and build new
multi-million dollar public schools at a record pace. They like new stadiums every 20 years. They
like to build and destroy shopping malls, apartment complexes and “mixed use”
zoning. They like for taxpayers to pay
for all of these and have found ways to get corporate welfare.
Cities and counties want
to be “wealthy” and show annual asset growth. Community Improvement Districts
have been created with government benefits. They can assess, borrow, bribe and
hand taxpayers the debt.
Before corporate
welfare, private companies would control commercial development very carefully.
It was 100% company money at risk and the companies owned the debt. Tax dollars
went to roads, bridges, sewers and water treatment plants. We need to go back
to that model and repeal the laws that allow politicians and cronies to blur
commercial development.
GA SB 85 is a Bill
passed by the GA Senate and headed to the GA House. This Bill is sponsored by
Brandon Beach, who also runs a Community Improvement District. This kind of
“self-dealing” is everywhere. Appointed boards control all the money. See
below:
Development Authorities;
revise the definition of projects as applicable; modify the tax exemption 15 LC 41 0377, SB 85
Senate Bill 85 by: Senators Beach of
the 21st, Ginn of the 47th, Gooch of the 51st, Mullis of the 53rd and Albers of
the 56th AS PASSED SENATE
A BILL TO BE ENTITLED AN ACT
To amend Chapter 62 of Title 36 of the
Official Code of Georgia Annotated, relating to
development authorities, so as to
revise the definition of project as applicable to said chapter; to modify the
tax exemption of development authorities; to correct cross-references; to
provide for related matters; to provide for an effective date; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY
OF GEORGIA:
SECTION 1. Chapter 62 of Title
36 of the Official Code of Georgia Annotated, relating to development
authorities, is amended in Code Section 36-62-2, relating to definitions, by
repealing in its entirety paragraph (6) and by enacting a new paragraph (6) to
read as follows:
Project' means the acquisition,
construction, installation, modification, renovation, or rehabilitation of
land, interests in land, buildings, structures, facilities, or other improvements
and the acquisition, installation, modification, renovation, rehabilitation, or
furnishing of fixtures, machinery, equipment, furniture, or other property of
any nature
whatsoever used on, in, or in
connection with any such land, interest in land, building, structure, facility,
or other improvement for the essential public purpose of the
development of trade, commerce,
industry, and employment opportunities. A project may be for any industrial,
commercial, business, office, parking, public, or other use, provided that a
majority of the members of the authority determines, by a duly adopted
resolution, that such project and such
use thereof would further the public purpose of this chapter."
SECTION 2. Said chapter is
further amended by revising Code Section 36-62-3, relating to the
constitutional authority for said chapter, finding of public purposes, and tax exemption,
as follows:
This chapter is passed pursuant to
authority granted the General Assembly by Article IX, Section VI, Paragraph III
of the Constitution of this state. Each authority created by this chapter is
created for nonprofit and public purposes, and it is found, determined, and
declared that the creation of each such authority and the carrying out of its
corporate purposes is in all respects for the benefit of the people of this
state and that the authority is an institution of purely public charity and
will be performing an essential governmental function in the exercise of the
power conferred upon it by this chapter. For such reasons, the state covenants,
from time to time, with the holders of the bonds issued under this chapter that
such authority shall be required to pay no taxes or assessments imposed by the
state or any of its counties, municipal corporations, political subdivisions,
or taxing districts upon any property acquired by the authority or under its
jurisdiction, control, possession, or supervision or leased by it to others
(other than property leased for the purposes of a 'project' as defined in
subparagraph (J) or (K) of paragraph (6) of Code Section 36-62-2, which shall
be taxable by the state and its counties, municipal corporations, political
subdivisions, and taxing districts) or upon its activities in the operation or
maintenance of any such property or on any income derived by the authority in
the form of fees, recording fees, rentals, charges, purchase price,
installments, or otherwise, and that the bonds of such authority, their
transfer, and the income therefrom shall at all times be exempt from taxation
within this state. The tax exemption provided in this Code section shall not
include any exemption from sales and use tax on property purchased by the
authority or for use by the authority."
SECTION 3. Said chapter is
further amended by revising Code Section 36-62-7, relating to the prohibition
on the operation of projects by governmental units and the sale or lease of
property for operation, as follows:
No project acquired under this chapter
shall be operated by an authority or any municipal corporation, county, or
other governmental subdivision. Such a project shall be leased or sold to, or
managed by, one or more persons, firms, or private corporations. Any
disposition of real property by an authority pursuant to paragraph (7) of Code
Section 36-62-6 shall be made to one or more persons, firms, corporations, or
governmental or public entities. If revenue bonds or other obligations are to be
issued to pay all or part of the cost of the project, the project must be so
leased or the contract for its sale or management must be entered into prior to
or simultaneously with the issuance of the bonds or obligations; provided,
however, that the acquisition and development of land by an authority as the
site for an industrial park as provided in this chapter or the acquisition and
development of land by an authority as the site for a sports facility or
amphitheater in accordance with Code Section 36-62-2 and the operation of such
a sports facility or amphitheater shall not be deemed to be the operation of a
project and, notwithstanding anything in this chapter to the contrary, an
authority shall not be required to enter into a lease of such a project or a
contract for its sale or management as a condition to the issuance of bonds or
other obligations of the authority to provide financing therefor. If sold, the
purchase price may be paid at one time or in installments falling due over not
more than 40 years from the date of transfer of possession. The lessee or
purchaser shall be required to pay all costs of operating and maintaining the
leased or purchased property and to pay rentals or installments in amounts
sufficient to pay the principal of and the interest and premium, if any, on all
of its bonds and other obligations as such principal and interest become due.
If the project is managed, the management contract must contain a term not less
than the final maturity date of any bonds or other obligations of the authority
to provide financing for the managed project and must provide that all costs of
operating and maintaining the managed project, including all management fees
payable under the management contract, shall be paid solely from the revenues
of the managed project and from the proceeds of any bonds or other obligations
of the authority to provide financing for the managed project. Any such
management contract may contain provisions allowing the authority to terminate
the management contract, but if the authority exercises any right
to terminate a management contract, it
must immediately enter into another management contract meeting the
requirements of this Code section."
Comments
Voters need to ask why we are allowing
developers receive tax subsidies and function without being responsible for
their own debts. Why are tax funds now
used for private profit.
Norb Leahy, Dunwoody GA Tea Party
Leader
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