These should be more widely adopted

From the AJC:

Around the state, it’s becoming more and more popular. A common ballot item in this year’s November election for many Gwinnett municipalities is the creation of a special taxing district.

Several municipalities will ask voters to consider a referendum giving them redevelopment powers to create a tax allocation district, or TAD, as an economic development tool. Such districts cull taxes from increasing property values within the target area and put the money back into public improvements there.

I’m a big supporter of TAD’s. I think they are a great idea. The more local governments understand them, the better off we’ll be.

Tax abatement plans and tax allocation districts are two great friends of revitalization that cost the taxpayers nothing, other that potential future tax revenue for a period of time, which would not even be generated but for the redevelopment. Of course, here in Macon, some city councilmen think this is a ponzi scheme. LOL.

25 comments

  1. suwtiger says:

    As eburke says, another one of the problems with the GREAT plan, the use of TAD’s will disappear. All the plans being discussed about the redevelopment near the army base and around various parts of Atlanta such as the Sembler project in Dekalb will be dust in the wind. Funny the press has not yet mentioned that?

  2. jm says:

    I think TAD’s must not be possible anymore in DeKalb. Our municipal property taxes were frozen last year so the only increases in property tax revenues would be after a sale.

  3. Harry says:

    A TAD only makes sense if the present value of marginal tax added-value with a TAD is greater than without one. Otherwise, you’re just “screwing” existing taxpayers, who have to pick up a bigger share of total public service costs.

  4. eehrhart says:

    We have a referendum on that every two years Rugby it is called an election. Terms can be limited very easily at that time.

  5. Icarus says:

    There’s a fair question in here, Rep Ehrhart.

    What happens to existing and planned TAD’s?

    The city of Atlanta is relying heavily on them for a lot of their major improvement projects, including the Peachtree Streetcar Project, The Beltline, and others.

    Does the Great Plan continue to fund these projects in full?

  6. CHelf says:

    Yes. Do existing TADs as well as ELOSTs and SPLOSTs all disappear? What current methods are abolished under the GREAT Plan? If they are abolished does this plan make any effort to ensure the same goals are being met?

  7. eehrhart says:

    Again Rugby: Every two years the voters will is enacted with an election. That is a term limit and that is what the people want according to those I talk with. They do not want an artificial limit placed on their choices.

  8. Jace Walden says:

    They do not want an artificial limit placed on their choices.

    Yet they want artificial conservatives centralizing their tax money under the Gold Dome like the Soviet Union?

  9. rugby_fan says:

    So you think the 22nd Amendment should be repealed then?

    If the people you talk with aren’t in favor of term limits, call for a constitutional convention, let your constituents’ voices be heard!

    I find it odd that all (or at least most) of the people you speak with are not in favor of term limits.

    16 states have term limits on their elected officials, and if you look at the link at the end, its clearly a common theme throughout our fair union that citizens are in favor of term limits.

    http://www.ustl.org/Press/Press_Releases/press.html

  10. eehrhart says:

    But yet Jace you do not seem to think the people are smart enough to decide. Why not come out and say it.
    This Soviet Union rhetoric is very shrill and sounds like someone who would rather not debate the facts which “centralizing” is certainly not. Is DOT money “soviet”? Is school money “soviet”? Are all the other state monies that so many locals want “soviet” What would happen should they gain what they are asking for, which is raising ALL this money locally? Are we only ok at the state when we just send the money and shut up?

  11. rugby_fan says:

    Earl:

    There are polls from all over the country showing support for term limits.

    And if people are no in favor of arbitrary term limits, call for a constitutional convention.

    Speaking of small samples; how many people have you spoken to about term limits?

  12. Icarus says:

    Term limits are a very valid topic of debate, but this thread is about Tax Allocation districts.

    I’ll repeat my question from above. What happens to exsiting and approved TADs, as well as their related projects. Is the state agreeing to fund these projects that local governments have already committed to?

  13. cheapseats says:

    Thanks, Rep. Erhart! What a GREAT idea!

    Let’s put a constitutional amendment on the ballot that prohibits any and all tax money from going to the state. Require that all revenue for all things – taxes, fees, licenses, etc. become the sole property of the local county governments in which it is collected and that those counties shall be solely responsible for roads, bridges, schools, hospitals, and everything!

    This is the kind of visionary thinking that I can quite clearly support!

    The folks under the Dome can just meet a few days a year and make proclamations and resolutions honoring the Girl Scout who sold the most cookies and stuff like that.

    I bet if you put that on the ballot, it would pass overwhelmingly! In fact, my polls show that it has the support of more than 80% of the voters I’ve polled. It’s the will of the people – don’t be afraid to let the people vote on it!

  14. Erick says:

    Yeah, let’s get the term limits threadjacking over and done with.

    The TAD question, though, remains. What happens to them and to tax abatement plans used to induce businesses?

  15. eburke says:

    One of the problems with the Great Plan is no one knows exactly what it will do but the entire house is already on board and gets upset when you raise legitimate questions about the consequenses.
    What happens to TAD’s if there is no appraisal system to determine value and send out bills. There are other questions such as equity between counties and cities. If I pay the same tax as my neighbor in town why does he get to have police service and fire service when I don’t? (This is not an attempted threadjacking)

  16. whitemalevoters says:

    White male voters across this great state applaud our biggest supporter: Earl Ehrhart!

    Earl, we appreciate that you have diligently and jealously stood up for the rights and dignity of the white male voters in this state. We appreciate your loyal support as we attempt to disenfranchise the non-white male voters of this state.

    Thank God for good Christian white male voters like the esteemed Mr. Ehrhart.

  17. CHelf says:

    I think we can say we are not getting an answer on existing local tax plans and what happens to them under the GREAT Plan. That question in various forms is being ignored but replies on state government control and the Soviet Union and other rhetoric is being commented on.

    Does this imply that the GREAT Plan discussion will only exist if hyperbole, heated rhetoric, insults, etc. are used?

  18. jaybird says:

    One of the problems with TAD’s is that school taxes and county go to the TAD instead of the schools. For example if the City of Alpharetta creates a TAD (which they did), all the school and county tax go to Alpharetta to pay off the TAD bonds. The services required of the new development (both school and county level services) are paid by the existing residents, most of whom do not live in the city of Alpharetta (but live in the same school district and county as Alpharetta)

  19. Mark Rountree says:

    A second serious question regarding this subject: it’s not just TADs that are in question, but CIDs (Community Improvement Districts).

    CIDs are currently the primary vehicles to revitalization in areas of intense need for infrastructure improvments ( such as transportation improvements at Galleria/Cumberland, Perimeter Mall area, Jimmy Carter Blvd, Gwinnett Place area, etc).

    CIDs are, for the most part, voluntarily created by a community to self-tax, and hold elections of officers to insure funds are being spent as the majority wishes.

    How would CIDs continue? My understanding is that they wouldn’t… is this true?

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