Tax Allocation District

A Tax Allocation District (TAD) is a designated area identified as underdeveloped or in need of investment, where growth is unlikely to occur without additional support.

A TAD allows developers to finance new projects using bonds or debt that are repaid over time through increases in property taxes generated by that development.

Put simply:
Instead of new tax revenue from development immediately going to Atlanta Public Schools, the City of Atlanta, and Fulton County, those funds are temporarily used to pay for the development itself. While this approach can accelerate development, it also changes the timing of when public entities receive new tax revenue.

The goal of a TAD is to spark growth and revitalization in areas that might otherwise remain unchanged, with the expectation that these investments will strengthen the community and the tax base over time.

TADs are funded through property tax revenue.

When a TAD is established, Atlanta Public Schools, the City of Atlanta, and Fulton County each decide whether to participate by contributing the new tax revenue generated from development within the district. Instead of going directly to these entities, that revenue is temporarily used to pay for redevelopment costs and associated debt.

Once those costs are fully paid and the TAD expires, all tax revenue, including the growth from development, returns to APS, the City of Atlanta, and Fulton County. For Atlanta Public Schools, this means that new revenue generated in these areas is not immediately available to support classrooms, staff, and student services.

Initial Year: The first year where incremental taxes were contributed to the TAD

APS Contribution through 2025: Cumulative increment from APS reinvested within the TAD from inception through 6/30/2025. Reflects actual collections of increment minus Payments in Lieu of Taxes (PILOTs) and other payments to APS made from increment.

*Corridor TADs: Each of the Corridor TADs were initially established individually by the City in 2006 without an APS contribution, set to expire in 2031. The 2019 and 2022 IGAs which established APS’ participation in the Corridor TADS, cumulative across the four, include a “hard outside termination of December 31, 2050 on the Corridor TADs for the inclusion of Atlanta Public School’s educational ad valorem tax increment” and mandate 100% PILOTs to APS thereafter if any the Corridor TADS are not terminated.

 

Atlanta is growing—and that growth brings new investment, new development, and new opportunities for our communities. One of the tools used to support that growth is the Tax Allocation District (TAD).

But when it comes to funding our schools, there is an important reality we all need to understand: The math matters.

How the Math Works

When a TAD is created, the increase in property tax revenue from new development is set aside to support that development. This means that while property values may rise, a portion of that new revenue does not flow to Atlanta Public Schools during the life of the TAD.

In simple terms:

• Development increases property values
• Property values increase potential tax revenue
• But within a TAD, that new revenue is redirected

Why This Matters for APS

Atlanta Public Schools relies on local property tax revenue to fund critical needs—teachers, classrooms, student support services, and daily operations.

As our city continues to grow, so do the needs of our students. At the same time, when revenue is redirected through TADs, it can limit the funds available to support those needs.

This creates a balancing challenge:

• Supporting citywide development and revitalization
• While also ensuring schools have the resources they need to serve every student

Looking Ahead

There are ongoing conversations about future development strategies, including potential extensions of existing TADs. These decisions will shape both the growth of our city and the financial outlook for our schools.

APS is committed to transparency and to ensuring our community understands how these decisions connect to student outcomes.