SUMMARY:

            This bill would amend Title 36 regarding bonds and obligations for redevelopment areas and would authorize the use of school tax funds for such purposes.

REQUIREMENTS:

• If a TAD were created in a county or a municipality with an independent school system, that county and/or system’s ad valorem taxes would be included in computing the tax allocation increments, but only if the BOE consents to the use of school tax funds for that purpose.
• If the “city council” sets the school millage, they must consent to the use of school tax funds for that purpose, and they must agree by resolution to be included.
• Counties may agree through resolution to participate in a municipal TAD if the school board (or governmental body that sets school millage) agrees.
• If a TAD is created in a consolidated government {i.e., Clarke County], ad valorem taxes for that government may be included, as well as any school system contained within it, if the school board (or government body that sets the millage) agrees.
• The following ad valorem taxes cannot be used for a TAD:
  • Taxes levied to repay bonded indebtedness;
  • Unless provided in the resolution, taxes levied on personal property or motor vehicles;
  • Unless provided in the resolution, tax levied on public utilities and railroad companies
• Several sections in the bill address implementation of the TADS to include definitions, allowable expenditures, etc.  Those that directly affect education include:
  • If a school system contributes to a TAD, the plan must contain a school system impact analysis to address the financial and operational effect of the proposed development on the school system to include:
    • An estimate of the number of new public school system students that could be generated;
    • The location of school facilities within the redevelopment area;
    • An estimate of the ELOST funds to be generated by the redevelopment, if any; and
    • A comparison of the anticipated residential property values compared to those prior to redevelopment.
• Chapter 80 is amended in Section 6 to add the PILOT Restriction Act
  • Payment in lieu of taxes would be allowed on capital projects in a TAD with the proportion of school taxes equal to the total property taxes on the project if it were subject to ad valorem taxes.
  • The bill forbids participation by non-government users that have no taxable property interest in the capital project, unless:
    • All government bodies participating agree
    • Consent is given by one government body within the group
  • There would be no effect on currently bonded projects