How does a TAD differ from an Enterprise Zone?
When an enterprise zone is created, property taxes are fully abated for the first five years and then gradually increased for the next five years. Conversely, when a TAD is created, property owners continue to pay property taxes at the full millage rate levied by the City and County. With a TAD, the local governments continue to receive the same amount of property taxes collected when the TAD was created. Any incremental increase in property tax revenues resulting from growth in property values within the TAD is deposited into the special fund for payment of redevelopment costs. Will creating a TAD cause a tax increase? No. The property tax millage rate stays the same as before the TAD was created. In fact, the additional tax revenues received as a result of the increased value of newly developed or redeveloped property can relieve the tax burden on other properties. For example, if a vacant lot is developed into a retail center with loft housing, which has significantly higher value t
Property taxes are abated in Enterprise Zones for a period of five years, then are gradually increased over the following five years. In a TAD, property owners pay normal property taxes, but the incremental increase in property taxes is deposited into a special fund for payment of redevelopment costs.
