09
LC 18 7833
House
Bill 63
By:
Representative Ehrhart of the
36th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 36 of the Official Code of Georgia Annotated, relating to local
government, so as to provide for additional requirements and limitations
regarding redevelopment and the issuance of certain bonds and obligations; to
change the qualifications of redevelopment areas; to change certain provisions
regarding loans for financing redevelopment costs; to change certain provisions
regarding contracts for exercising redevelopment powers; to provide for the
allocation of negative tax allocation increments; to require payment of negative
tax allocation increments by developers; to change certain provisions regarding
computation of tax allocation increments of districts and authorize expressly
the use of school tax funds; to place restrictions on the ability of local
government authorities to issue revenue bonds and other revenue obligations that
are payable from payments in lieu of property taxes; to provide for the
applicability and nonapplicability of such restrictions; to provide for powers,
duties, and responsibilities of each county board of tax assessors and local
governments and local government authorities with respect to the foregoing; to
provide for related matters; to provide an effective date; to repeal conflicting
laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
36 of the Official Code of Georgia Annotated, relating to local government, is
amended by revising paragraph (7) of Code Section 36-44-3, relating to
definitions regarding redevelopment powers, as follows:
"(7)
'Redevelopment area' means:
(A)
Any urbanized or developed area in which the structures, buildings, or
improvements, by reason of dilapidation, deterioration, age, or obsolescence,
inadequate provision for ventilation, light, air, sanitation, or open spaces,
high density of population and overcrowding, or the existence of conditions
which endanger life or property by fire and other causes, or any combination of
such factors, is conducive to ill health, transmission of disease, infant
mortality, high unemployment, juvenile delinquency, or crime and is detrimental
to the public health, safety, morals, or welfare;
(B)
Any urbanized or developed area which by reason of the presence of a predominant
number of substandard, slum, deteriorated, or deteriorating structures; the
predominance of defective or inadequate street layout, inadequate parking,
roadways, bridges, or public transportation facilities incapable of handling the
volume of traffic flow into or through the area, either at present or following
proposed redevelopment; the faulty lot layout in relation to size, adequacy,
accessibility, or usefulness; unsanitary or unsafe conditions; deterioration of
site or other improvements; the diversity of ownership, tax, or special
assessment delinquency exceeding the fair value of the land; diversity of
ownership on defective or unusual conditions of title which prevent or encumber
the free alienability of land; or the existence of conditions which endanger
life or property by fire and other causes; or any combination of the foregoing,
substantially impairs or arrests the sound growth of the community, retards the
provision of housing accommodations or employment opportunities; or constitutes
an economic or social liability and is a menace to the public health, safety,
morals, or welfare in its present condition and use;
(C)
Any open area located within an urbanized or developed area within the corporate
limits of a municipality which because of any factor or combination of factors
enumerated in subparagraph (A) or (B) of this paragraph substantially impairs or
arrests the sound growth of the community;
(D)
Any area located within an urbanized or developed area and which, immediately
prior to becoming an open area, qualified as a redevelopment area under
subparagraph (A) or (B) of this paragraph;
(E)
Any area located within an urbanized or developed area which is substantially
underutilized by containing open lots or parcels of land or by containing a
substantial number of buildings or structures which are 40 years old or older or
by containing structures or buildings of relatively low value as compared to the
value of structures or buildings in the vicinity of the area or by having
development impaired by airport and related transportation noise or by related
environmental factors or an area in which there is a shortage of housing that is
affordable for persons of low or moderate income which the local legislative
body designates as appropriate for community redevelopment or by any combination
of the foregoing factors;
(F)
Any geographic area designated within the comprehensive plan of a political
subdivision for redevelopment which has previously been developed for
commercial, residential, industrial, office, or similar or ancillary uses and
which lies within the service delivery area of the political subdivision, in
which the current condition of the area is less desirable than the redevelopment
of the area for new commercial, residential, industrial, office, or other uses,
or a combination of uses, including the provision of open space or pedestrian
and transit improvements, and any geographic area that is adversely affected by
airport or transportation related noise or other environmental degradation,
contamination, or other environmental factors which the political subdivision
has determined to be impairing or retarding the redevelopment of the
area;
(G)
Any urbanized or developed area or an area connecting two or more urbanized or
developed areas that has been subject to some development but which has
inadequate roadways, bridges, or public transportation or transit facilities
incapable of handling the volume of traffic or passenger flow in or through the
area in a safe and efficient manner either at present or following proposed
redevelopment; or
(H)(C)
Any area combining any factors specified in subparagraphs (A)
through
(G)
or
(B) of this paragraph."
SECTION
2.
Said
title is further amended by revising Code Section 36-44-9, relating to
computation of tax allocation increments of districts, as follows:
"36-44-9.
(a)
When a tax allocation district is created within the area of operation of a
municipality by the local legislative body of such municipality, property taxes
for computing tax allocation increments shall be based on all ad valorem
property taxes levied by the municipality
if the
municipality consents pursuant to Article IX, Section II, Paragraph VII(b) of
the Constitution. If the municipality has
an independent school system, ad valorem property taxes levied for educational
purposes by the municipality shall be included in computing the tax allocation
increments if the local legislative body of the municipality is empowered to
make the determination of the municipal ad valorem tax millage rate for
educational purposes
and consents
to the use of school tax funds pursuant to Article IX, Section II, Paragraph
VII(b) of the Constitution. If the board
of education of the independent school system is empowered to set the ad valorem
tax millage rate for educational purposes and the local legislative body of the
municipality does not have the authority to modify such rate set by the board of
education, the tax allocation increment shall not be computed on the basis of
municipal taxes for educational purposes unless the board of education of the
independent school system consents, by resolution duly adopted by said board of
education, to the inclusion of educational ad valorem property taxes as a basis
for computing tax allocation increments
pursuant to
Article IX, Section II, Paragraph VII(b) of the
Constitution.
(b)
County ad valorem property taxes may be included in the computation of tax
allocation increments of a municipal tax allocation district if the local
legislative body of the county consents to such inclusion by resolution duly
adopted by said local legislative body
pursuant to
Article IX, Section II, Paragraph VII(b) of the
Constitution. For those municipalities
which do not have an independent school system, ad valorem property taxes levied
for county school district purposes may be included in the computation of tax
allocation increments of a municipal tax allocation district if the county board
of education or the local legislative body of the county, whichever is
authorized to establish the ad valorem tax millage rate for educational
purposes, consents to such inclusion by resolution duly adopted by said board of
education or local legislative body,
respectively,
pursuant to Article IX, Section II, Paragraph VII(b) of the
Constitution.
(c)
When a tax allocation district is created within the area of operation of a
county by the local legislative body of the county, property taxes for computing
tax allocation increments shall be based on all county ad valorem property taxes
levied for county governmental purposes
if the county
consents pursuant to Article IX, Section II, Paragraph VII(b) of the
Constitution. Ad valorem property taxes
levied for county school district purposes may be included in the computation of
tax allocation increments for a county tax allocation district if the board of
education of the county school district or the local legislative body of the
county, whichever is authorized to establish the ad valorem tax millage rate for
educational purposes, consents to such inclusion by resolution duly adopted by
said board of education or local legislative body,
respectively,
pursuant to Article IX, Section II, Paragraph VII(b) of the
Constitution.
(d)
When a tax allocation district is created within the area of operation of a
consolidated government by the local legislative body of the consolidated
government, property taxes for computing tax allocation increments shall be
based on all consolidated government ad valorem property taxes levied for
consolidated government purposes
if the
consolidated government consents pursuant to Article IX, Section II, Paragraph
VII(b) of the Constitution. Ad valorem
property taxes levied for school district purposes within the boundaries of the
consolidated government may be included in the computation of tax allocation
increments for a consolidated government tax allocation district if the board of
education of such school district or the local legislative body of the
consolidated government, whichever is authorized to establish the ad valorem tax
millage rate for educational purposes within the school district, consents to
such inclusion by resolution duly adopted by said board of education or local
legislative body,
respectively,
pursuant to Article IX, Section II, Paragraph VII(b) of the
Constitution.
(e)
The resolution of any county, municipality, consolidated government or board of
education consenting to the inclusion of ad valorem property taxes in the
computation of tax increments shall not specify the inclusion of any ad valorem
property taxes not specified in the resolution creating the tax allocation
district.
(f)
A county may pledge all or part of county general funds derived from a municipal
tax allocation district for payment or security of payment of tax allocation
bonds issued by the municipality and for payment of other redevelopment costs of
the tax allocation district if the local legislative body of the county consents
to the use of such general funds by resolution duly adopted by said local
legislative body."
SECTION
3.
Said
title is further amended by revising Code Section 36-44-11, relating to
allocation of positive tax allocation increments, as follows:
"36-44-11.
(a)
Positive tax allocation increments of a tax allocation district shall be
allocated to the political subdivision which created the district for each year
from the effective date of the creation of the district until that time when all
redevelopment costs and all tax allocation bonds of the district have been paid
or provided for, subject to any agreement with bondholders. General funds
derived from the tax allocation district which have been pledged for payment or
security for payment of tax allocation bonds and other redevelopment costs of
the tax allocation district shall also be allocated to the political subdivision
which created the district for each year from the effective date of the creation
of the district until that time when all redevelopment costs and all tax
allocation bonds have been paid or provided for, subject to any agreement with
bondholders.
(b)
Negative tax allocation increments of a tax allocation district shall be paid by
the developer and allocated to the political subdivision which created the
district for each year from the effective date of the creation of the district
until that time when all redevelopment costs and all tax allocation bonds of the
district have been paid or provided for, subject to any agreement with
bondholders.
(b)(1)(c)(1)
Each county tax collector or tax commissioner, municipal official responsible
for collecting municipal ad valorem property taxes, or consolidated government
official responsible for collecting consolidated government ad valorem property
taxes shall, on the dates provided by law for the payment of taxes collected to
the respective political subdivisions, pay over to the appropriate fiscal
officer of each political subdivision having created a tax allocation district,
out of taxes collected on behalf of such political subdivision, including but
not limited to taxes collected for a political subdivision or board of education
consenting, pursuant to Code Section 36-44-9, to inclusion of its ad valorem
property taxes in the computation of tax allocation increments for that tax
allocation district, that portion, if any, which represents positive tax
allocation increments payable to such political subdivision.
(2)
In addition, each county shall, upon receipt, pay over to the appropriate fiscal
officer of each municipality having created a tax allocation district that
portion, if any, of its general funds derived from the tax allocation district
which have been pledged for payment or security for payment of tax allocation
bonds and for payment of other redevelopment costs of the tax allocation
district pursuant to Code Section 36-44-9.
(3)
Each county tax collector or tax commissioner, municipal official responsible
for collecting municipal ad valorem property taxes, or consolidated government
official responsible for collecting consolidated government ad valorem property
taxes shall, on the dates provided by law for the payment of taxes collected to
the respective political subdivisions, pay over to the appropriate fiscal
officer of each political subdivision having created a tax allocation district,
out of taxes collected on behalf of such political subdivision, including but
not limited to taxes collected for a political subdivision or board of education
consenting, pursuant to Code Section 36-44-9, to inclusion of its ad valorem
property taxes in the computation of tax allocation increments for that tax
allocation district, that portion, if any, which represents negative tax
allocation increments payable to such political subdivision.
(c)(d)
All positive tax allocation increments
and all
negative tax allocation increments
received for a tax allocation district shall be deposited into a special fund
for the district upon receipt by the fiscal officer of the political
subdivision. All general funds derived from the tax allocation district which
have been pledged for payment or security for payment of tax allocation bonds
and other redevelopment costs of the tax allocation district shall be deposited
upon receipt into the special fund. Any lease or other contract payments made
under the district's redevelopment plan shall also be deposited upon receipt
into the special fund. Moneys derived from positive tax allocation increments,
negative tax
allocation increments, general fund
moneys, and moneys derived from lease or other contract payments shall be
accounted for separately within the special fund. Moneys shall be paid out of
the fund only to pay redevelopment costs of the district or to satisfy claims of
holders of tax allocation bonds issued for the district. The local legislative
body shall irrevocably pledge all or a part of such special fund to the payment
of the tax allocation bonds. The special fund or designated part thereof may
thereafter be used only for the payment of the tax allocation bonds and interest
until they have been fully paid, and a holder of said bonds shall have a lien
against the special fund or said designated part thereof pledged for payment of
said bonds and may either at law or in equity protect and enforce the lien.
General funds derived from the tax allocation district may be used for payment
of tax allocation bonds only to the extent that positive tax allocation
increments,
negative tax increments, and lease or
other contract payments in the special fund are insufficient at any time to pay
principal and interest due on such bonds. Subject to any agreement with
bondholders, moneys in the fund may be temporarily invested in the same manner
as other funds of the political subdivision. Except as provided in Code Section
36-44-20, general funds derived from the tax allocation district may be used for
payment of tax allocation bonds only to the extent that positive tax allocation
increments,
negative tax allocation increments, and
lease or other contract payments in the special fund are insufficient at any
time to pay the principal and interest due on such bonds. After all
redevelopment costs and all tax allocation bonds of the district have been paid
or provided for, subject to any agreement with bondholders, if there remains in
the fund any moneys derived from positive tax allocation increments
and negative
tax allocation increments, they shall be
paid over to each county, municipality, consolidated government, or county or
independent board of education whose ad valorem property taxes were affected by
the tax allocation district in proportion to the aggregate contribution of such
taxes by such political subdivision less aggregate payments to such political
subdivision pursuant to subparagraph (G) of paragraph (8) of Code Section
36-44-3 and in the same manner as the most recent distribution by the county tax
collector or tax commissioner, municipal official responsible for collecting
municipal ad valorem property taxes, or consolidated government official
responsible for collecting consolidated government ad valorem property taxes.
If there remains in the fund any other moneys, they shall be paid over to each
political subdivision which contributed to the fund in proportion to the
respective total contribution each made to the fund."
SECTION
4.
Said
title is further amended by revising Code Section 36-44-16, relating to loans
for financing redevelopment costs, as follows:
"36-44-16.
As
an additional source for financing redevelopment costs, a political subdivision
or its redevelopment agency may borrow funds from financial institutions and, in
connection therewith, may pledge or assign lease contracts or revenue received
from lease contracts on property owned by the political subdivision or its
redevelopment agency within a redevelopment area. A political subdivision or its
redevelopment agency is authorized to enter into contracts with financial
institutions for the purpose of exercising the authority provided by this Code
section, and such contracts may obligate the political subdivision or its
redevelopment agency for any number of years not exceeding
25
ten.
Contractual obligations incurred by a political subdivision pursuant to this
Code section shall not constitute debt within the meaning of Article IX, Section
V of the Constitution."
SECTION
5.
Said
title is further amended by revising Code Section 36-44-19, relating to
contracts for exercising redevelopment powers, as follows:
"36-44-19.
A
political subdivision may enter into any contract relating to the exercise of
its redevelopment powers under this chapter with any private persons, firms,
corporations, or business entities for any period not exceeding
30
ten
years. Such contracts may include, without being limited to, contracts to
convey or otherwise obligate real property for redevelopment under this chapter
although that property has not yet been acquired at the time of contracting by
the county or municipality."
SECTION
6.
Said
title is further amended in Chapter 80, relating to general provisions
regarding counties, municipalities, and other governmental entities, by adding a
new Code section to read as follows:
"36-80-16.1.
(a)
This Code section shall be known and may be cited as the 'PILOT Restriction
Act.'
(b)
As used in this Code section, 'payments in lieu of taxes' means payments made
directly or indirectly:
(1)
Primarily in consideration of the issuance of revenue bonds or other revenue
obligations and the application by the issuer of such bonds or other obligations
of the proceeds of such bonds or other obligations to finance all or a portion
of the costs of acquiring, constructing, equipping, or installing a capital
project; and
(2)
In further consideration of the laws of the State of Georgia granting an
exemption from ad valorem taxation for such capital project,
To
or for the account of the issuer of revenue bonds or other revenue obligations
or the public bodies whose consent would otherwise be required, in the case of
the separate payments provided for under paragraph (2) of subsection (c) of this
Code section. Payments in lieu of taxes shall be deemed to be payments in lieu
of taxes for educational purposes in the same proportion that property taxes for
educational purposes would bear to total property taxes on such capital project
if the project were subject to ad valorem property taxation.
(c)(1)
No local government authority, as defined in Code Section 36-80-16, shall be
authorized to issue revenue bonds or other revenue obligations to finance, in
whole or in part, any capital project if the terms governing such revenue bonds
or other revenue obligations provide for such capital project to be used
primarily by a nongovernmental user or users that have no taxable property
interest in such capital project and provide for such revenue bonds or other
revenue obligations to be repaid, in whole or in part, through payments in lieu
of taxes made by a nongovernmental user or users, unless:
(A)
Each of the local governments that have property tax levying authority in the
area in which such capital project is located consents by ordinance or
resolution to the use of payments in lieu of taxes for such purposes;
and
(B)
In the case of payments in lieu of taxes for educational purposes, a consent is
obtained that covers the use for such purposes of such payments in accordance
with subsection (d) of this Code section, except that the terms governing such
revenue bonds or other revenue obligations may provide for one or more of the
public bodies, whose consent would otherwise be required, instead to receive, in
such capacity, separate payments in lieu of taxes at least equal to the property
taxes that such public body or bodies would have received if the capital project
were subject to ad valorem taxation or in such other amount or amounts as may be
agreed to by such public body or bodies.
(2)
No such revenue bonds or other revenue obligations may be so issued without
compliance with the requirements of paragraph (1) of this
subsection.
(d)(1)
When a capital project is located within the boundaries of a municipality with
an independent school system, a consent by the municipality under subparagraph
(c)(1)(B) of this Code section shall cover the use of payments in lieu of taxes
for educational purposes, provided that, if the board of education of the
independent school system is empowered to set the ad valorem tax millage rate
for educational purposes and the legislative body of the municipality does not
have the authority to modify such rate set by the board of education, the
requisite consent shall be that of the board of education of the independent
school system rather than that of the legislative body of the
municipality.
(2)
For those municipalities which do not have an independent school system, a
consent by the municipality under subparagraph (c)(1)(B) of this Code section
shall cover the use of payments in lieu of taxes for educational purposes if the
county board of education or the local legislative body of the county, whichever
is authorized to establish the ad valorem tax millage rate for educational
purposes, consents to such coverage by resolution duly adopted by said board of
education or local legislative body, as appropriate.
(3)
The use of payments in lieu of taxes levied for county school district purposes
shall be covered by a consent under subparagraph (c)(1)(B) of this Code section
if the board of education of the county school district or the local legislative
body of the county, whichever is authorized to establish the ad valorem tax
millage rate for educational purposes, consents to such coverage by resolution
duly adopted by said board of education or local legislative body, as
appropriate.
(4)
The use of payments in lieu of taxes levied for school district purposes within
the boundaries of a consolidated government shall be covered by a consent under
subparagraph (c)(1)(B) of this Code section if the board of education of such
school district or the local legislative body of the consolidated government,
whichever is authorized to establish the ad valorem tax millage rate for
educational purposes within the school district, consents to such coverage by
resolution duly adopted by said board of education or local legislative body, as
appropriate.
(e)
This Code section shall not affect revenue bonds or other revenue obligations
which any local government authority has issued or has conditionally or
unconditionally agreed to issue, or which have been judicially validated, on or
before the effective date of this Code section. Each county board of tax
assessors shall continue, notwithstanding this Code section, to exercise its
powers and discharge its duties. Each local government authority that is
authorized to issue revenue bonds or other revenue obligations secured by a
taxable property interest, such as a taxable lease of a capital project, shall
continue, notwithstanding this Code section, to exercise its powers and
discharge its duties, including, in the case of development authorities, the
development of trade, commerce, industry, and employment opportunities. Any
local government or local government authority which directly or indirectly
receives payments in lieu of taxes shall be authorized to use the same for any
governmental or public purpose of such local government or local government
authority."
SECTION
7.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
8.
All
laws and parts of laws in conflict with this Act are repealed.