Statehouse bill would hamper Mayor Dickens’ tax district extensions
A bill introduced under the Gold Dome would set back an ambitious proposal by Mayor Andre Dickens to put billions of dollars toward revitalizing Atlanta’s underserved neighborhoods by extending the city’s eight tax allocation districts.
It’s a new political hurdle for the Dickens administration that’s already struggling to garner the necessary local support for the full TAD extension plan, which is projected to bring in more than $5 billion in revenue — if approved by the City Council, the Atlanta School Board and the Fulton County Commission.
Tax allocation districts, commonly referred to as TADs, are designated areas in which property tax revenue growth is allocated to pay for infrastructure within their boundaries. The area’s property tax value is frozen, and any revenue generated above that goes toward reinvesting in the community.
Dickens is hoping to use the financial tool to fund 200 infrastructure projects, like his proposed four new MARTA stations announced in 2024, construction of light rail along the Beltline’s Southside trail and even a new hospital to fill the city’s health care gaps.
Dubbed the “Neighborhood Reinvestment Initiative,” the mayor and his supporters pitch the area-specific investments as a crucial step in fighting racial disparities across the city as it continues to grow.
But House Bill 1240, introduced by Alpharetta Republican State Rep. Chuck Martin, would prohibit renewal of current TADs if they collectively reach 10% of the city’s total tax base. Atlanta’s TADs are currently at 17.6% of the tax base, according to a city oversight commission tasked with hashing out the plan.
State law already prevented local governments from creating new TADs above the 10% threshold. But this bill adds language to the law that would prevent renewals above that percentage.
“If there’s going to be a new set of bonds issued, a new redevelopment plan — it’s a new TAD, and that’s the way the law is today,” Martin said during the bill’s first committee hearing on Tuesday.
Most of the districts are set to expire in 2030, but Dickens is pushing for an extension through 2055 — a massive request that would redirect funds away from the county and school system’s general operating funds.
Without county and school board support, an extension is estimated to generate about $1.4 billion.
It’s an unexpected political fight that’s emerged between the city and state lawmakers this session that could be hard to stop.
A spokesperson for the mayor’s office said they will continue “to have discussions with State leaders on this matter and others to ensure Atlanta residents’ and our business community’s interests are best served.”
Since taking office in 2022, Dickens has worked to mend the fractured relationship with the state. At the start of the legislative session, the mayor visited the Gold Dome to make the city’s priorities clear to lawmakers.
“We’re all here to serve our residents — there’s no political footballs and political points to be scored by beating on each other,” Dickens told The Atlanta Journal-Constitution in January.
The city is working behind the scenes to halt the tax allocation district bill from moving forward. D.J. Myers, with Atlanta’s Office of Governmental Affairs, told the committee that city representatives are meeting with Martin on Wednesday.
“This legislation would have significant impacts on the city, and we do have some concerns,” Myers said, adding that the city plans to bring subject-matter experts to the next hearing.
Matthew Yarbrough, vice president of policy and government affairs for the Council for Quality Growth, a trade organization that represents development businesses and organizations across metro Atlanta, characterized TADs as “one of the most successful tools” to spur major development. He warned that the 10% cap — which he said was unique to Georgia — could make them “victims of their own success.”
“As they redevelop and continue to build a property tax base within their TAD, if they then need to come up for renewal in order to complete an updated project list, it may become difficult to fall back into the parameters of the existing 10% that they were created under,” Yarbrough said.
A second House committee hearing will be held on the bill before a vote.
About the Author
Riley Bunch is a reporter on the local government team at The Atlanta Journal-Constitution covering Atlanta City Hall. She covers the mayor and Atlanta City Council while also keeping an eye on the city’s diverse neighborhoods.
