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Tax Increment Financing, commonly referred to as TIF, is an economic development tool used by local governments in Georgia to stimulate redevelopment and revitalization in underdeveloped or blighted areas. Through this mechanism, cities and counties can create special districts called Tax Allocation Districts (TADs). The increase in property tax revenue (the increment) generated by the growing property values within the TAD is then earmarked to finance improvements and infrastructure within that district.
In Georgia, TIF is governed by the Georgia Redevelopment Powers Law. This statute allows local governments to dedicate new tax revenue from a designated area to fund development activities, such as building roads, improving utilities, cleaning up contaminated property, and fostering economic growth that might not otherwise occur. TIF in Georgia requires careful legal compliance, including public notice, hearings, and in some cases, general voter approval.
Tax Increment Financing projects are complex and involve multiple stakeholders, including local governments, developers, property owners, and financial institutions. You might need a lawyer's assistance in the following situations:
Whether you are a local government entity, developer, or property owner impacted by a TAD, a knowledgeable attorney can help you navigate the technical requirements and protect your rights.
In Georgia, Tax Increment Financing is specifically authorized by the Redevelopment Powers Law, O.C.G.A. Title 36, Chapter 44. The law establishes the legal framework for creating TADs, including essential steps such as:
Local TADs are subject to oversight and may involve coordination with school districts and other taxing authorities, as their participation can impact the increment available for redevelopment. Noncompliance with statutory requirements can result in legal challenges or jeopardize the financing structure.
A Tax Allocation District is a designated area in a city or county where future growth in property tax revenues is used to finance current improvements within that district.
When property values rise within a TAD due to redevelopment, the additional tax revenue generated above the base year amount is set aside to pay for improvements, infrastructure, or to repay TIF bonds.
Local governments such as city or county officials can propose the creation of a TAD, often in conjunction with developers or community stakeholders.
Yes, in most cases, the creation of a new TAD requires approval by a local referendum, as stipulated by the Redevelopment Powers Law.
Typical TIF projects include public infrastructure, transportation improvements, environmental remediation, affordable housing, streetscapes, and other activities intended to spur economic development within the TAD.
Yes, but local school boards must agree to participate. Otherwise, their portion of tax revenue is not included in the increment.
Most TADs in Georgia operate for 20 to 30 years, or until the redevelopment plan objectives are achieved and debts are paid.
Property owners may face increased property values and, eventually, higher taxes. Legal disputes or improper administration of the TAD can also have financial impacts.
Yes, TAD projects must comply with public notice requirements, hearings, and annual reporting obligations to ensure transparency for taxpayers and stakeholders.
Yes, local governments can amend or dissolve a TAD, but this typically requires additional public notice, hearings, and sometimes voter approval, depending on the changes proposed.
If you require further information or assistance, the following resources and organizations can be helpful:
These entities offer guidance, as well as directories of professionals experienced with Tax Increment Financing and redevelopment projects.
If you believe you may be affected by or involved in a Tax Increment Financing project in Georgia, consider the following steps:
Early legal advice can help you avoid costly mistakes and position you for successful participation, negotiation, or defense in any TIF-related matters.
