Tax Allocation District (TAD)

E84449

economic development instrument public finance tool tax increment financing mechanism

A Tax Allocation District (TAD) is a designated area where future increases in property tax revenues are earmarked to finance redevelopment and infrastructure projects within that district.

Aliases (1)

Tax Allocation District ×56

Statements (56)

Predicate	Object
instanceOf	economic development instrument → public finance tool → tax increment financing mechanism →
alsoKnownAs	TAD → tax allocation district (TAD) → tax increment district → tax increment financing district →
benefit	can accelerate infrastructure delivery → can leverage private investment with public financing → can redevelop blighted or underutilized properties →
coreConcept	future increases in property tax revenues are captured → incremental tax revenue above a base year is earmarked → incremental tax revenue is used to finance infrastructure → incremental tax revenue is used to finance redevelopment →
effectOnTaxingBodies	base year tax revenues continue to flow to taxing jurisdictions → incremental revenues are diverted to the TAD fund →
finances	public facilities related to redevelopment → public infrastructure such as parks → public infrastructure such as roads → public infrastructure such as sidewalks → public infrastructure such as utilities → site preparation and environmental remediation →
fundingMechanism	issuance of tax allocation bonds → pay-as-you-go reimbursement from tax increment → pledging tax increment to repay debt →
hasComponent	base year property tax value → financing plan → geographically defined district boundary → redevelopment plan → tax increment (growth in tax revenue over base) →
hasPurpose	increase property values within the district → promote economic development → revitalize blighted or underdeveloped areas → stimulate private investment → support infrastructure improvements → support redevelopment projects →
legalBasis	state enabling legislation →
relatedConcept	Tax Increment Financing → redevelopment district → urban renewal area →
requires	adoption of a redevelopment plan → designation of district boundaries → establishment of a base year tax value → local government approval →
revenueSource	incremental city property tax revenues → incremental county property tax revenues (where authorized) → incremental school district property tax revenues (where authorized) → property tax increment within the district →
risk	future tax revenues are pledged and may reduce flexibility → potential impact on overlapping taxing jurisdictions → projected tax increment may not materialize →
typicalDuration	multi-year period → often 20 to 30 years →
usedInJurisdiction	City of Atlanta NERFINISHED → State of Georgia → United States NERFINISHED →

Referenced by (1)

Subject (surface form when different)	Predicate
Atlanta BeltLine →	fundingMechanism