Attachment number 3 \nPage 16 of 102

Item #2
Taxpayer Responsibilities Inside the TAD Boundaries
Unlike Enterprise Zones or other tax abatement programs, private property owners in a Tax Allocation District
pay their full share of property taxes every year. They pay the full millage on their property's real assessed
value, just as those who live outside the TAD do.
EXAMPLE: Kim lives outside of a TAD in an 1,800 sq. ft. townhome with a Fair Market Value (FMV)
of $200,000 and an assessed value of $80,000 (40% of FMV). She pays $16.21 in city and county
taxes for every $1,000 of the assessed value of her home.
James lives in the same city in a TAD that was approved to be effective in the following year. He
also lives in an 1,800 sq. ft. townhome with a FMV of $200,000 and an assessed value of $80,000,
and he pays $16.21 for very $1,000 in assessed value.
Kim and James both pay $1,296.80 in city and county taxes, all of which is used by the city and
county. The following year, city and county tax rates stay the same, but the value of both Kim's
and James' homes has increased from $200,000 FMV to $210,000 FMV and tax bills have
increased from $1,296.80 to $1,361.64 - a difference of $64.84.
Where doTAD Property Taxes Go?
::::
$800 / _ :.,;,: ::1: - i: r-
$600 w ...... .:t;J. t,;::
$400 // .. ::.::::: ... :::.::::: .. ::.::.::.: ... : ... ::.......... _-. ... :: .. ::.:: .. ::.::.::.':: .. ::.:.::.::'.':: :{:r - :::/:: -
$200 ._, rr. : :
$-
TAD bonds or payrrents
[J Oty/County General Fund
Although Kim and James pay exactly the same amount, the difference is where their property taxes go.
While property taxes outside of TADs are directed into a city and county's general fund, the revenues
generated in a TAD are directed two ways: one portion - the original or "base" portion - goes into the
general budget and continues to fund city and county services, and the remainder helps finance the TAD.
In other words, persons and businesses within a TAD pay for city and county services AND for the capital
improvements that made the revitalized neighborhood possible, while those who live outside the TAD pay
only for the city and county services - NOT for TAD improvements.
Of the new tax bill of $1,361.64, all of Kim's taxes go to the city and the county. For James, all of the
taxes that he paid in the year prior to the TAD ($1,296.80) continue to go to the city and the county. Only
the increment of $64.84 goes to pay for the TAD improvements.
Another Tool Helping to Build One Augusta Page 15