- Tax-allocation district
A tax-allocation district (TAD), also known as
tax increment financing, is a defined area where real estate property taxmonies gathered above a certain thresholdfor a certain period of time (typically 25 years) to be used a specified improvement. The funds raised from a TAD are placed in a tax-free bond (finance)where the money can continue to grow. These improvements are typically for revitalizationand especially to complete redevelopmentefforts.
Enactment of a TAD typically requires approval of all
local governments who will be giving-up taxes, thus a project within a municipalitywill also require approval of the county's commission (or its local equivalent), and the board of the school district, in addition to the city counciland possibly township board of supervisors(if applicable).
This differs from an
improvement district, which the property owners agree to pay extra for improvements. That is only an option for an area which is already in good economic health.
*In the U.S. state of Georgia, TAD
legislationwas created in 1985and is described in the OCGAsection [http://www.legis.state.ga.us/cgi-bin/gl_codes_detail.pl?code=36-44-5 36-44-5] .
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