What is the difference between a Tax Allocation District and Tax Increment Financing?
The TAD is the geographic area in which tax increment financing (TIF) can be used. These terms are used interchangeably in Atlanta, but most other municipalities refer to their TADs as TIF districts. TIF is or economic development tool used in a TAD. What can TAD funds be used for? The Redevelopment Powers Law outlines the possible uses for TAD funds. In Georgia, TAD funds can be used for grants for capital costs, which include: construction of new buildings; public works or improvements; renovation, rehabilitation, demolition, or expansion of existing buildings; acquisition of equipment; and clearing and grading of land. The Redevelopment Plan for each district specifies the permissible uses of the funds that support the goals outlined in the Plan. TAD funds must be spent on uses consistent with the Redevelopment Plan for the TAD as approved by City Council. Funds must be allocated to projects and spent within the boundaries of the district, as set forth in the Redevelopment Plan. Do
The TAD is the geographic area in which TIF can be used. These terms are used interchangeably in Atlanta, but most other municipalities refer to their TADs as TIF districts. How do TADs improve communities? TADs create short and long-term benefits to communities. For example, the Atlantic Station TAD was created in order to provide funding for clean-up of an environmentally contaminated site and construction of basic infrastructure. The direct result of this investment is a vibrant new community that will provide over 4,000 residential units and create 30,000 new jobs in the City of Atlanta. Will property taxes be raised? 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. What is a tax increment? A tax increment is the difference between the amount of property tax reven
