• What is a TAD? 

TAD is short for Tax Allocation District.  A tax allocation district is a tool local governments can use to help underperforming areas of a city or county which are designated for redevelopment.  Both the Athens-Clarke County Mayor and Commission would need to set the geographical boundaries and approve any proposed TADs.  Plans call for TADs to be used in commercial redevelopment areas, such as in empty "big-box" stores such as vacant super-centers or electronics stores or in places such as vacant strip-malls.  A TAD will enhance Clarke County's ability to attract desirable development and jobs to our County.               

• How does a TAD work?

The County Commission designates an area in need of redevelopment, and after approval of this area by the Mayor and Commission, a TAD is formed.  The Commission and the Clarke County School Board, after a separate approval by the School Board, include their fair share of new tax revenues (the tax increment) in the TAD, while property owners will continue to pay their full tax levy.  Any increase in property tax revenues resulting from new growth and development within the TAD is deposited into a special fund for payment of redevelopment costs.  Tax-exempt bonds are issued to pay front-end infrastructure and eligible development costs in partnership with a private developer. As redevelopment occurs in the district, the “tax increment” resulting from redevelopment projects is used to retire the debt issued to fund the eligible redevelopment costs. The public portion of the redevelopment project funds itself using the additional taxes generated by the project.

• Will a TAD cause a tax rate increase?

No.  A redevelopment agency does not have the authority to levy or increase property taxes.  It is important to note that the increased tax revenue from the sale, development, or rehabilitation of property reflects a rise in property value and not an increase in tax rate.  Taxes will increase around a tax allocation district only if the value of the property surrounding the TAD increases.  If property values increase, the net worth of the owner will also increase.  Plans are for the use of TADs in commercial redevelopment areas, and these plans must be approved by both Mayor and Commission.  The more positive improvements which can be made in the commercial and industrial districts in Athens, the lower tax burden will be for homeowners.

• Examples of TADs in across the United States and in Georgia.

Tax allocation districts, or tax increment financing (TIF) as the process is known in other states, are being used in 48 states throughout the US.  Other states are using tax increment financing to improve blighted areas, attract new industry and business to commercial areas which had been abandoned, and help improve the districts of their existing industries.  For example, Illinois has used tax increment financing over 400 times, with Chicago having over 120 TIFs alone.  In Georgia, 14 tax allocation districts have been created in the metro Atlanta area, with the most notable example being the Atlantic Station redevelopment.  There are an additional 7 TADs coming before the electorate in Georgia this year, including Athens-Clarke County.

Other TAD Resources include:

• The Georgia Department of Community Affairs -- provides a definition of TADs and ideas to consider if implementing a TAD.

• The Redevelopment Powers Law of Georgia -- provides the legislation which allows for the creation of TADs.

• The City of Atlanta Eastside Tax Allocation District -- provides a description of a TAD in east Atlanta. 

• The City of Alpharetta TAD Downtown Redevelopment -- provides a description of a TAD in Alpharetta.

• Atlantic Station TAD -- provides a description of the TAD uses in the Atlantic Station development.

• Holland & Knight -- reasons behind the development of TADs in Georgia and an overview of GA TADs in 2004