David Pennington, the mayor of Dalton, Ga., stands inside of the City Hall facility.DALTON, Ga. - After a vote of approval from the Dalton City Council, Whitfield County voters likely will see a measure on the November ballot asking them to allow local governments to create special tax districts as a means to entice developers to the area.
Whitfield County commissioners and leaders from Varnell and Tunnel Hill previously had approved the request, and the resolution now will go to state legislators asking them to introduce a bill.
The tax allocation districts, known as TADs, use an increase in property and/or sales tax to pay for development in the defined area, Elyse Cochran, executive director of the Dalton-Whitfield County Joint Development Authority, told the City Council during its regular meeting Monday evening.
The tax districts increase chances the county will be able to attract larger retailers, but also can be used for a broad umbrella of new development and community improvements, Cochran said.
"Many large-box retailers will not come to an area anymore without the availability of a TAD," Cochran said.
After a special tax district is created, the base property rate continues to go into the general fund, but any increase in property taxes would be used to pay costs in a development project, Cochran said.
The money does not come from an increased millage rate but in an increase in property values or sales tax dollars, Cochran said.
Government can issue revenue bonds to pay for development and repay the bonds from increased tax revenue over a period of several years. School districts also can decide if they want to be involved, she said.
Councilwoman Denise Woods and Mayor David Pennington questioned Cochran about what would happen if the area had a decrease in revenue.
"Study after study have shown TADS are successful," Cochran said.
With the approval of the City Council, legislators will be asked to pass a bill putting the issue on the November ballot. If voters approve the measure, leaders then could appoint a new board or use an existing board to determine taxing districts.
Residents will have 60 days after the announcement of a proposed district to voice their opinions on the issue before local governments vote to approve the plan.
In other business, the City Council approved a resolution changing the city sick leave policy. Beginning April 1, city employees will receive 10 sick days rather than 12. New employees hired after April 1 no longer will be able to accrue sick days for retirement, but current employees still will have that option.
Contact staff writer Mariann Martin at mmartin@timesfreepress.com or 706-980-5824.