How are increases in service costs, such as public safety and waste management, funded if property tax revenues to taxing jurisdictions remain level over the life of a TAD?
Areas designated for TADs generally don’t pay their fair share of taxes: high-wealth areas carry the cost of services for low-income areas. In fact, the tax digest within areas designated as TADs in Georgia is 44 percent of the average value of the host jurisdiction*. TADs are typically established in areas with a declining tax base resulting from disinvestment and blight, where the demand for some city services such as solid waste collection and police patrol is greater. The creation of a TAD generally leads to a decreased need for many city services as well as increased revenues for the jurisdiction, including personal property taxes, sales taxes and impact fees. Once the district is dissolved, the incremental growth in real property taxes reverts back to the taxing jurisdictions, creating a windfall of new revenue and expanding their tax bases. * Livable Communities Coalition, Survey and Analysis of Tax Allocation Districts in Georgia (October 2007) 2.
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- How are increases in service costs, such as public safety and waste management, funded if property tax revenues to taxing jurisdictions remain level over the life of a TAD?
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