Why would local jurisdictions choose to forgo receiving increased property tax revenues in TADs?
Local jurisdictions choose to invest their future tax revenues in new development. TADs are established in slow- or no-growth areas where a disproportionately low amount of property tax revenues is generated. Typically, areas designated as TADs don’t pay their fair share of property taxes, forcing higher-wealth areas to carry the cost of services for these areas. TADs are essential for catalyzing development that would otherwise not occur. After a TAD is created, participating public school districts, cities and counties continue to receive the pre-TAD base amount of property tax revenues. Increases in property tax revenues resulting from new development attracted to the area are used to pay certain redevelopment costs; this is the subsidy used to draw new projects to the area. All taxing jurisdictions choose whether or not they want to participate and the terms of their participation in TADs. In Atlanta, payments in lieu of taxes (PILOT) have been provided as allowed under state law t
