Wednesday, May 7, 2008

TAD (tax allocation district) Bad News for Taxpayers

The current county commission recently voted unanimously to create a TAD (tax allocation district) that encircled a billion dollar residential development project called Savannah River Landing adjacent the Savannah River and just south of River Street. What this means is that for 20 years, yes 20 years, all the property taxes due from the new construction and sales will go exclusively to pay for the infrastructure improvements surrounding the development. This also means that the property taxes paid by new owners of these multi million dollar residences will have to be dedicated to only the infrastructure improvement costs, $54,000,000. None of their property taxes can legally be spent on police, fire, parks and recreation, libraries, or public transportation.

We must wonder why, when faced with the worst real estate market since the Great Depression along with an unrepresented foreclosure rate, the county commission would fall in line and vote to obligate (restrict) property taxes for 20 years from such a predictably risky development venture. The upshot of this public policy failure is most likely higher property taxes for everyone living in Chatham County.

Here is a link on the subject:
"Priming The Pump" Savannah Morning News

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