Tax Allocation Districts (TAD)

Doraville Tax Allocation District. Posted by Nancy Jester Reports 12/21/15

At this Tuesday's Board of Commissioners' meeting, the Board approved an Intergovernmental Agreement (IGA) with Doraville regarding the Tax Allocation District (TAD) for the former GM Plant site. The Commission approved the TAD earlier this year. The IGA sets forth how the TAD will function and sets out the infrastructure improvements that can be financed by TAD revenues.

So, what is a TAD? How does it work?

A TAD is a defined area where real estate property tax monies gathered above a certain threshold for a certain, finite period of time, can be used for specified improvements in the defined area.

The property taxes collected by all governmental entities (city, county, and/or school district) that participate in the TAD continue to be paid to those entities. The TAD does not decrease or abate taxation on this property.

As improvements are made and development occurs on the property, its value will increase. The tax that is paid on the increase in the value, gets paid, and accrues into the TAD account. Those funds can only be utilized pursuant to the Intergovernmental Agreement (IGA) that designates the projects for which TAD funds can be used.

Let me be clear: Every dime of property taxes for this property must be paid. The TAD does not change that. The taxes that are paid today on that property will continue to be paid directly to the city, county, and school district. The taxes assessed on the increase in value of the property, also have to be paid. They go directly to the TAD for specific, pre-approved, directed uses.

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Source: Email from Nancy Jester Reports

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Comments

Nancy did a good job of explaining TADs. Nancy Jester is the District 1 DeKalb GA County Commissioner, representing Dunwoody, Brookhaven, Doraville and Chamblee.

GA law allows cities and counties to authorize TADs. Before the UN Agenda 21 Land Use and Zoning Rules were adopted by the GA Legislature, there were no entities competing with cities and counties for taxes. 

The “Regionalists” partnered with the commercial land developers and slid the TAD law in after 1993. Before that, the success of a commercial development project was the sole responsibility of the property owners.  Cities and counties were petitioned to provide streets, sidewalks and intersections.

When the US had a real private sector, property owners were gambling with their own money.  If the project was a success, the owners profited; if not, losses were taken by the owners.  Consequently, many “public/private” projects have failed leaving taxpayers holding the bag.

 

Laws that allow for entities like TADs, Redevelopment Authorities and Development Authorities allow for corruption of free market, private ownership principles. This is yet another way to pick the pockets of the taxpayers. Bonds and tax holidays are also a bad deal for taxpayers.

Norb Leahy, Dunwoody GA Tea Party Leader