HB 1629 - Atlanta, City of; enterprise zones; amend provisions

First Reader Summary

A BILL to amend the "Atlanta Urban Enterprise Zone Act," so as to change the criteria for designation of enterprise zones and adding land to such zones; to change the provisions relating to the amount and duration of tax exemptions and property eligible for such exemptions; and for other purposes.

Orrock, Nan (56th) McKinney, J. E (51st) Ashe, Kathy B (46th)
Brooks, Tyrone (54th) Sinkfield, Georganna T (57th) Holmes, Bob (53rd)
Status Summary HC: LLeg SC: SLGO LA: 04/20/98 Signed by Governor
Page Numbers - 1/ 2/ 3/ 4/ 5/ 6/ 7/ 8/ 9/ 10/ 11/ 12/ 13/ 14/ 15/ 16
House Action Senate
2/11/98 Read 1st Time 3/13/98
2/12/98 Read 2nd Time
3/12/98 Favorably Reported 3/16/98
3/12/98 Read 3rd Time
3/12/98 Passed/Adopted 3/16/98
4/7/98 Sent to Governor
4/20/98 Signed by Governor
924 Act/Veto Number
4/20/98 Effective Date

HB 1629                                          LC 11 9458/1 
 
 
 
 
 
 
                        A BILL TO BE ENTITLED 
                               AN ACT 
 
 
  1- 1  To amend the "Atlanta Urban Enterprise Zone Act," approved 
  1- 2  March 24, 1988 (Ga. L. 1988, p. 4164), as amended, so as to 
  1- 3  change the criteria for designation of enterprise zones and 
  1- 4  adding land to such zones; to change the provisions relating 
  1- 5  to the amount and duration of tax exemptions and property 
  1- 6  eligible for such exemptions; to change the provisions 
  1- 7  relating to the effective date for zone creations and 
  1- 8  exemptions from taxation; to repeal conflicting laws; and 
  1- 9  for other purposes. 
 
  1-10       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 
 
  1-11                           SECTION 1. 
 
  1-12  The "Atlanta Urban Enterprise Zone Act," approved March 24, 
  1-13  1988 (Ga. L. 1988, p. 4164), as amended, is amended by 
  1-14  striking Section 5, which reads as follows: 
 
 
 
  1-15    (a) Zones for commercial, industrial, or mixed-use 
  1-16    commercial and industrial purposes may only be created in 
  1-17    an area of the city composed of census tracts as defined 
  1-18    in the United States decennial census of 1990 or most 
  1-19    recent census, where: 
 
  1-20      (1) The percentage of family and nonfamily households in 
  1-21      that census tract that were below the poverty level was 
  1-22      at least double the percentage of family and nonfamily 
  1-23      households below the poverty level for Fulton County as 
  1-24      a whole; 
 
  1-25      (2) The percentage of persons in that census tract who 
  1-26      were in the labor force and did not work was at least 
  1-27      double the percentage of persons who were in the labor 
  1-28      force and did not work for Fulton County as a whole; 
 
  1-29      (3) The percentage of total jobs lost in that census 
  1-30      tract for a specified consecutive five-year period was 
  1-31      at least double the percentage of total jobs lost for 
  1-32      such period for Fulton County as a whole; or 
 
 
                                 -1- 
 
 
 
  2- 1      (4) The census tract is contiguous to an otherwise 
  2- 2      eligible census tract, as determined by paragraph (1), 
  2- 3      (2), or (3) of this subsection, 51 percent of which 
  2- 4      contains underutilized open lots or parcels of land or 
  2- 5      structures or buildings of relatively low value, as 
  2- 6      compared to the value of structures or buildings in the 
  2- 7      whole census tract, or which is development impaired by 
  2- 8      airport or airport related transportation noise or 
  2- 9      airport related environmental factors or by any 
  2-10      combination of the foregoing factors. 
 
  2-11    (b) A zone for residential purposes may only be created in 
  2-12    an area of the city composed of census tracts in each of 
  2-13    which, according to the United States decennial census of 
  2-14    1990 or most recent census: 
 
  2-15      (1) The percentage of family and nonfamily households in 
  2-16      that census tract that were below the poverty level was 
  2-17      at least double the percentage of family and nonfamily 
  2-18      households below the poverty level for Fulton County as 
  2-19      a whole; 
 
  2-20      (2) The percentage of persons in that census tract who 
  2-21      were in the labor force and did not work was at least 
  2-22      double the percentage of persons who were in the labor 
  2-23      force and did not work for Fulton County as a whole; or 
 
  2-24      (3) The total number of persons residing in each census 
  2-25      tract was less than 1,000 persons. 
 
  2-26    (c) A zone for mixed-use residential and commercial 
  2-27    purposes may only be created in an area of the city 
  2-28    composed of census tracts as defined in the United States 
  2-29    decennial census of 1990 or most recent census, where: 
 
  2-30      (1) The percentage of family and nonfamily households in 
  2-31      that census tract that were below the poverty level was 
  2-32      at least double the percentage of family and nonfamily 
  2-33      households below the poverty level for Fulton County as 
  2-34      a whole; 
 
  2-35      (2) The percentage of persons in that census tract who 
  2-36      were in the labor force and did not work was at least 
  2-37      double the percentage of persons who were in the labor 
  2-38      force and did not work for Fulton County as a whole; 
 
  2-39      (3) The percentage of total jobs lost in that census 
  2-40      tract for a specified consecutive five-year period was 
  2-41      at least double the percentage of total jobs lost for 
  2-42      such period for Fulton County as a whole; 
 
 
                                 -2- 
 
 
 
  3- 1      (4) The total number of persons residing in each census 
  3- 2      tract was less than 1,000 persons; or 
 
  3- 3      (5) The census tract is contiguous to an otherwise 
  3- 4      eligible census tract, as determined by subsection (a) 
  3- 5      of this section, 51 percent of which contains 
  3- 6      underutilized open lots or parcels of land or structures 
  3- 7      or buildings of relatively low value, as compared to the 
  3- 8      value of structures or buildings in the whole census 
  3- 9      tract, or which is development impaired by airport or 
  3-10      airport related transportation noise or airport related 
  3-11      environmental factors or by any combination of the 
  3-12      foregoing factors. 
 
  3-13      (d)(1) A zone for industrial purposes may not be less 
  3-14      than 25 acres in size. 
 
  3-15      (2) A zone for commercial purposes may not be less than 
  3-16      eight acres in size. 
 
  3-17      (3) A zone for residential purposes may not be less than 
  3-18      five acres in size, except: 
 
  3-19        (A) When the proposed zone is within 1,000 feet of a 
  3-20        MARTA station pedestrian entrance, in which case a 
  3-21        minimum of one-fourth of an acre (0.25 acres) will be 
  3-22        required; 
 
  3-23        (B) When the proposed zone contains a historic 
  3-24        multifamily structure, which structure is suitable for 
  3-25        rehabilitation or renovation and can provide a minimum 
  3-26        of four multifamily housing units, in which case there 
  3-27        will be no minimum acreage required; 
 
  3-28        (C) When the proposed zone contains a single-room 
  3-29        occupancy residence in which at least 80 percent of 
  3-30        the units to be provided bear weekly rents which do 
  3-31        not exceed the fair market rents for the Atlanta 
  3-32        metropolitan statistical area for single-room 
  3-33        occupancy residences as most recently published by the 
  3-34        United States Department of Housing and Urban 
  3-35        Development.  In said case, there will be no minimum 
  3-36        acreage required.  Prior to enterprise zone status 
  3-37        being granted to single-room occupancy residences, the 
  3-38        single-room occupancy operating plan must be 
  3-39        presented, and it must project a minimum of 20 percent 
  3-40        of the units for homeless persons, including persons 
  3-41        previously living in emergency shelters, substandard 
  3-42        housing, or in no housing whatsoever; or 
 
 
 
                                 -3- 
 
 
 
  4- 1        (D) When the proposed zone is located within the 
  4- 2        Central Business District of the City of Atlanta as 
  4- 3        defined in the most recent United States Census of 
  4- 4        Retail Trade, in which case a minimum of 2.5 acres 
  4- 5        will be required. 
 
  4- 6      (4) A zone for mixed-use residential and commercial 
  4- 7      purposes may not be less than five acres in size, 
  4- 8      except: 
 
  4- 9        (A) When the proposed zone is located within 1,000 
  4-10        feet of a MARTA station pedestrian entrance, in which 
  4-11        case a minimum of one-fourth of an acre (0.25 acres) 
  4-12        will be required; or 
 
  4-13        (B) When the proposed zone is located beyond 1,000 
  4-14        feet but within 2,000 feet of a MARTA station 
  4-15        pedestrian entrance, in which case a minimum of one 
  4-16        acre will be required. 
 
  4-17      (5) A zone for mixed-use commercial and industrial 
  4-18      purposes may not be less than 25 acres in size. 
 
  4-19    (e) A zone may extend into a census tract which does not 
  4-20    comply with the requirements of subsection (a), (b), or 
  4-21    (c) of this section if at least 75 percent of the expanded 
  4-22    zone would comply with the requirements of subsection (a), 
  4-23    (b), or (c) of this section. 
 
  4-24    (f) An existing commercial, industrial, residential, 
  4-25    mixed-use commercial and industrial, or mixed-use 
  4-26    residential and commercial purposes zone may be amended to 
  4-27    add additional land to the zone, provided that: 
 
  4-28      (1) The area to be added complies with the requirements 
  4-29      of subsections (a), (b), (c) and (e) of this section; 
  4-30      and 
 
  4-31      (2) The area to be added is at least ten acres in size 
  4-32      for commercial, industrial, mixed-use commercial and 
  4-33      industrial, or mixed-use residential and commercial 
  4-34      purposes, or one acre in size for residential purposes, 
  4-35      and provided, further, that all land is vacant. 
  4-36      Notwithstanding the date of expansion of the existing 
  4-37      zone, the schedule of abatements for the area added to 
  4-38      the existing zone shall coincide with the schedule of 
  4-39      abatements for the existing zone.", 
 
  4-40  and inserting in its place the following: 
 
 
 
 
                                 -4- 
 
 
 
 
 
  5- 1    (a) In order to be designated as an enterprise zone, a 
  5- 2    nominated area shall meet at least three of the four 
  5- 3    criteria specified in subsections (b), (c), (d), and (e) 
  5- 4    of this section.  In determining whether an area suffers 
  5- 5    from poverty, unemployment, or general distress, the 
  5- 6    governing body shall use data from the most current United 
  5- 7    States decennial census and from other information 
  5- 8    published by the Federal Bureau of the Census, the Federal 
  5- 9    Bureau of Labor Statistics, and the Georgia Department of 
  5-10    Labor.  In determining whether an area suffers from 
  5-11    underdevelopment, the governing body shall use the data 
  5-12    specified in subsection (e) of this Code section.  The 
  5-13    data shall be comparable in point or period of time and 
  5-14    methodology employed. 
 
  5-15    (b) Pervasive poverty shall be evidenced by showing that 
  5-16    poverty is widespread throughout the nominated area and 
  5-17    shall be established by using the following criteria: 
 
  5-18      (1) The poverty rate shall be determined from the data 
  5-19      in Table P121 contained in Census of Population and 
  5-20      Housing, 1990: Summary Tape File 3A, on CD-ROM 
  5-21      (Georgia), prepared by the U.S. Bureau of Census (1992); 
 
  5-22      (2) For each census geographic block group within the 
  5-23      nominated area, the ratio of income to poverty level for 
  5-24      at least 20 percent of the residents shall be less than 
  5-25      1.0; 
 
  5-26      (3) In at least 50 percent of the census geographic 
  5-27      block groups within the nominated area, the ratio of 
  5-28      income to poverty level for at least 30 percent of the 
  5-29      residents shall be less than 1.0; 
 
  5-30      (4) Census geographic block groups with no population 
  5-31      shall be treated as having a poverty rate which meets 
  5-32      the standards of paragraph (2) of this subsection but 
  5-33      shall be treated as having a zero poverty rate for the 
  5-34      purpose of applying paragraph (3) of this subsection; 
  5-35      and 
 
  5-36      (5) All parcels of a nominated area must abut and may 
  5-37      not contain a noncontiguous parcel, unless such 
  5-38      nonabutting parcel qualifies separately under the 
  5-39      criteria set forth under paragraphs (2) and (3) of this 
  5-40      subsection. 
 
 
 
 
                                 -5- 
 
 
 
  6- 1    (c) Unemployment shall be evidenced by the use of data 
  6- 2    published by the Office of Labor Information Systems of 
  6- 3    the Georgia Department of Labor indicating that the 
  6- 4    average rate of unemployment for the nominated area for 
  6- 5    the preceding calendar year is at least 10 percent higher 
  6- 6    than the average rate of unemployment for the state or by 
  6- 7    evidence of adverse economic conditions brought about by 
  6- 8    significant job dislocation within the nominated area such 
  6- 9    as the closing of a manufacturing plant or federal 
  6-10    facility. 
 
  6-11    (d) General distress shall be evidenced by adverse 
  6-12    conditions within the nominated area other than those of 
  6-13    pervasive poverty and unemployment. Examples of such 
  6-14    adverse conditions include, but are not limited to, a high 
  6-15    incidence of crime, abandoned or dilapidated structures, 
  6-16    deteriorated infrastructure, and substantial population 
  6-17    decline. 
 
  6-18    (e) Underdevelopment shall be evidenced by data indicating 
  6-19    development activities, or the lack thereof, through land 
  6-20    disturbance permits, business license fees, building 
  6-21    permits, development fees, or other similar data 
  6-22    indicating that the level of development in the nominated 
  6-23    area is at least 20 percent lower than development 
  6-24    activity within the local governing body's jurisdiction. 
 
  6-25    (f) An existing commercial, industrial, residential, 
  6-26    mixed-use commercial and industrial, or mixed-use 
  6-27    residential and commercial purposes zone may be amended to 
  6-28    add additional land to the zone, provided that: 
 
  6-29      (1) The area to be added complies with the requirements 
  6-30      of subsection (a) of this section; and 
 
  6-31      (2) Notwithstanding the date of expansion of the 
  6-32      existing zone, the schedule of abatements for the area 
  6-33      added to the existing zone shall coincide with the 
  6-34      schedule of abatements for the existing zone." 
 
  6-35                           SECTION 2. 
 
  6-36  Said Act is further amended by striking subsection (b) of 
  6-37  Section 7 thereof, which reads as follows: 
 
  6-38    "(b) Exemptions from ad valorem taxation of real property 
  6-39    within a zone under this Act may be granted for the 
  6-40    taxable value of: 
 
 
 
 
                                 -6- 
 
 
 
  7- 1      (1) The land itself only if the taxable value of all 
  7- 2      improvements thereon made after the effective date of 
  7- 3      the creation of the zone in which that land is located 
  7- 4      equals or exceeds three times the taxable value of the 
  7- 5      land on the effective date of the creation of the zone; 
  7- 6      and 
 
  7- 7      (2) Only those improvements made after the effective 
  7- 8      date of the creation of the zone in which the 
  7- 9      improvements are located.", 
 
  7-10  and inserting in its place the following: 
 
  7-11    "(b) Exemptions from ad valorem taxation of real property 
  7-12    within a zone under this Act may be granted for the 
  7-13    taxable value of: 
 
  7-14      (1) The land itself only if the taxable value of all 
  7-15      improvements made thereon, in any year during which the 
  7-16      area in which the land is located has an enterprise zone 
  7-17      designation, equals or exceeds three times the taxable 
  7-18      value of the land on the effective date of the creation 
  7-19      of the zone; and 
 
  7-20      (2) Only those improvements made in any year during 
  7-21      which an area has an enterprise zone designation." 
 
  7-22                           SECTION 3. 
 
  7-23  Said Act is further amended by striking subsection (a) of 
  7-24  Section 8 thereof, which reads as follows: 
 
  7-25    "(a) For zones created for industrial or mixed-use 
  7-26    commercial and industrial purposes: 
 
  7-27      (1) Real property in a zone which is exempt from ad 
  7-28      valorem taxation under this Act shall be exempt for 100 
  7-29      percent of its taxable value for the first five years 
  7-30      after the creation of the zone in which the property is 
  7-31      located, 80 percent of its taxable value for the next 
  7-32      five years, 60 percent of it taxable value for the next 
  7-33      five years, 40 percent of its taxable value for the next 
  7-34      five years, and 20 percent of its taxable value for the 
  7-35      last five years; 
 
  7-36      (2) Real property in a zone which is exempt from ad 
  7-37      valorem taxation under this Act as a result of 
  7-38      rehabilitation shall be limited to the value of 
  7-39      improvements added to the existing structure after the 
  7-40      creation of the zone and the value of the land in 
  7-41      accordance with paragraph (1) of subsection (b) of 
 
 
                                 -7- 
 
 
 
  8- 1      Section 7.  At such time as the value of the 
  8- 2      improvements added exceed the value of the land, as of 
  8- 3      the date of the creation of the zone, by a factor of 
  8- 4      three or more, then the full value of both the 
  8- 5      improvements added and the land shall be eligible for 
  8- 6      the exemption granted under this Act.  Said real 
  8- 7      property in such zone shall be exempt in accordance with 
  8- 8      the following schedule:  100 percent of its taxable 
  8- 9      value for the first five years after the creation of the 
  8-10      zone, 80 percent of its taxable value for the next five 
  8-11      years, 60 percent of its taxable value for the next five 
  8-12      years, 40 percent of its taxable value for the next five 
  8-13      years, and 20 percent of its taxable value for the last 
  8-14      five years; 
 
  8-15      (3) Inventories in a zone which are exempt from ad 
  8-16      valorem taxation under this Act shall be exempt from 100 
  8-17      percent of their taxable value for 25 years after the 
  8-18      creation of that zone; 
 
  8-19      (4) A zone shall exist for 25 years after the effective 
  8-20      date of its creation and at the end of that period the 
  8-21      zone and all exemptions established therein pursuant to 
  8-22      this Act shall be abolished; 
 
  8-23      (5) Except as provided in paragraph (4) of this 
  8-24      subsection, a zone may only be abolished or decreased in 
  8-25      size by appropriate ordinance of the city council, 
  8-26      approved by a majority of the registered voters of the 
  8-27      city voting in a special election which shall be 
  8-28      required to be called for such purpose.  No such special 
  8-29      election to approve the abolition or decrease in size of 
  8-30      a zone may be called within five years from the 
  8-31      effective date of the creation of that zone.  If the 
  8-32      results of the election are in favor of the abolition or 
  8-33      decrease in size of that zone, it shall be abolished or 
  8-34      decreased, respectively, at the end of the fifth year 
  8-35      following that special election; and 
 
  8-36      (6) The amount of the exemption for property in a zone 
  8-37      may not be changed and the type of property subject to 
  8-38      an exemption in a zone may not be decreased by the city 
  8-39      council or board of commissioners after the passage of 
  8-40      the respective city ordinance or county resolution 
  8-41      creating that exemption under this Act, unless the zone 
  8-42      and all exemptions on property therein are abolished as 
  8-43      provided in this subsection.", 
 
 
 
                                 -8- 
 
 
 
  9- 1  and inserting in its place the following: 
 
  9- 2    "(a) For zones created for industrial or mixed-use 
  9- 3    commercial and industrial purposes: 
 
  9- 4      (1) Real property in a zone which is exempt from ad 
  9- 5      valorem taxation under this Act shall be exempt for 100 
  9- 6      percent of its taxable value for the first five years, 
  9- 7      beginning in any year during which the area in which the 
  9- 8      property is located has an enterprise zone designation, 
  9- 9      80 percent of its taxable value in the sixth and seventh 
  9-10      years, 60 percent of its taxable value in the eighth 
  9-11      year, 40 percent of its taxable value in the ninth year, 
  9-12      and 20 percent of its taxable value in the tenth year; 
 
  9-13      (2) Real property in a zone which is exempt from ad 
  9-14      valorem taxation under this Act as a result of 
  9-15      rehabilitation shall be limited to the value of 
  9-16      improvements added to the existing structure, beginning 
  9-17      in any year during which the area in which the property 
  9-18      is located has an enterprise zone designation, and the 
  9-19      value of the land in accordance with paragraph (1) of 
  9-20      subsection (b) of Section 7 of this Act.  At such time 
  9-21      as the value of the improvements added exceed the value 
  9-22      of the land, as of the date of the creation of the zone, 
  9-23      by a factor of three or more, then the full value of 
  9-24      both the improvements added and the land shall be 
  9-25      eligible for the exemption granted under this Act.  Said 
  9-26      real property in such zone shall be exempt in accordance 
  9-27      with the following schedule:  100 percent of its taxable 
  9-28      value for the first five years, beginning in any year 
  9-29      during which the area in which the property is located 
  9-30      has an enterprise zone designation, 80 percent of its 
  9-31      taxable value in the sixth and seventh years, 60 percent 
  9-32      of its taxable value in the eighth year, 40 percent of 
  9-33      its taxable value in the ninth year, and 20 percent of 
  9-34      its taxable value in the tenth year; 
 
  9-35      (3) Inventories in a zone which are exempt from ad 
  9-36      valorem taxation under this Act shall be exempt for 100 
  9-37      percent of their taxable value for ten years beginning 
  9-38      in any year during which the area in which the 
  9-39      inventories are located has an enterprise zone 
  9-40      designation; 
 
  9-41      (4) A zone shall exist for ten years after the effective 
  9-42      date of its creation; 
 
 
 
 
                                 -9- 
 
 
 
 10- 1      (5) Except as provided in paragraph (4) of this 
 10- 2      subsection, a zone may only be abolished or decreased in 
 10- 3      size by an appropriate ordinance of the city council 
 10- 4      approved by a majority of the registered voters of the 
 10- 5      city voting in a special election which shall be 
 10- 6      required to be called for such purpose.  No such special 
 10- 7      election to approve the abolition or decrease in size of 
 10- 8      a zone may be called within five years from any year 
 10- 9      during which an area first has an enterprise zone 
 10-10      designation; and 
 
 10-11      (6) The amount of the exemption for property in a zone 
 10-12      may not be changed and the type of property subject to 
 10-13      an exemption in a zone may not be decreased by the city 
 10-14      council or board of commissioners after the passage of 
 10-15      the respective city ordinance or county resolution 
 10-16      creating that exemption under this Act, unless the zone 
 10-17      and all exemptions on property therein are abolished as 
 10-18      provided in this subsection." 
 
 10-19                           SECTION 4. 
 
 10-20  Said Act is further amended by striking subsections (b), 
 10-21  (c), and (d) of Section 8 and inserting in their respective 
 10-22  places the following: 
 
 10-23    "(b) For zones created for commercial purposes: 
 
 10-24      (1) Real property in a zone which is exempt from ad 
 10-25      valorem taxation under this Act shall be exempt for 100 
 10-26      percent of its taxable value for the first five years, 
 10-27      beginning in any year during which the area in which the 
 10-28      property is located has an enterprise zone designation, 
 10-29      80 percent of its taxable value of the next two years, 
 10-30      60 percent of its taxable value for the next year, 40 
 10-31      percent of its taxable value for the next year, and 20 
 10-32      percent of its taxable value for the last year; 
 
 10-33      (2) Real property in a zone which is exempt from ad 
 10-34      valorem taxation under this Act as a result of 
 10-35      rehabilitation shall be limited to the value of 
 10-36      improvements added to the existing structure, beginning 
 10-37      in any year during which the area in which the property 
 10-38      is located has an enterprise zone designation, and the 
 10-39      value of the land in accordance with paragraph (1) of 
 10-40      subsection (b) of Section 7 of this Act.  At such time 
 10-41      as the value of the improvements added exceed the value 
 10-42      of the land, as of the date of the creation of the zone, 
 10-43      by a factor of three or more, then the full value of 
 
 
                                 -10- 
 
 
 
 11- 1      both the improvements added and the land shall be 
 11- 2      eligible for the exemption granted under this Act.  Said 
 11- 3      real property in such zone shall be exempt in accordance 
 11- 4      with the following schedule:  100 percent of its taxable 
 11- 5      value for the first five years, beginning in any year 
 11- 6      during which the area in which the property is located 
 11- 7      has an enterprise zone designation, 80 percent of its 
 11- 8      taxable value for the next two years, 60 percent of its 
 11- 9      taxable value for the next year, 40 percent of its 
 11-10      taxable value for the next year, and 20 percent of its 
 11-11      taxable value for the last year; 
 
 11-12      (3) A commercial zone shall exist for ten years after 
 11-13      the effective date of its creation; 
 
 11-14      (4) A zone for commercial purposes shall not be 
 11-15      abolished or reduced in size nor shall the amounts of 
 11-16      exemptions from ad valorem taxation be altered by action 
 11-17      of the city council or board of commissioners after 
 11-18      adoption of a resolution or ordinance creating the zone. 
 
 11-19    (c) For zones created for residential purposes: 
 
 11-20        (1)(A) Real property in a zone which is exempt from ad 
 11-21        valorem taxation under this Act as a result of new 
 11-22        construction or conversion shall be exempt for 100 
 11-23        percent of its taxable value for the first five years, 
 11-24        beginning in any year during which the area in which 
 11-25        the property is located has an enterprise zone 
 11-26        designation, 80 percent of its taxable value for the 
 11-27        next two years, 60 percent of its taxable value for 
 11-28        the next year, 40 percent of its taxable value for the 
 11-29        next year, and 20 percent of its taxable value for the 
 11-30        last year. 
 
 11-31        (B) Real property in a zone which is exempt from ad 
 11-32        valorem taxation under this Act as a result of 
 11-33        rehabilitation shall be limited to the value of 
 11-34        improvements added to the existing structure, 
 11-35        beginning in any year during which the area in which 
 11-36        the property is located has an enterprise zone 
 11-37        designation, and the value of the land in accordance 
 11-38        with paragraph (3) of this subsection.  At such time 
 11-39        as the value of the improvements added exceed the 
 11-40        value of the land, as of the date of the creation of 
 11-41        the zone, by a factor of eight or more, then the full 
 11-42        value of the improvements added shall be eligible for 
 11-43        the exemption granted under this Act.  Said real 
 
 
 
                                 -11- 
 
 
 
 12- 1        property in such zone shall be exempt in accordance 
 12- 2        with the following schedule: 100 percent of its 
 12- 3        taxable value for the first five years, beginning in 
 12- 4        any year during which the area in which the property 
 12- 5        is located has an enterprise zone designation, 80 
 12- 6        percent of its taxable value for the next two years, 
 12- 7        60 percent of its taxable value for the next year, 40 
 12- 8        percent of its taxable value for the next year, and 20 
 12- 9        percent of its taxable value for the last year; 
 
 12-10        (2)(A) Except as provided in subparagraph (B) of this 
 12-11        paragraph, a zone shall exist for ten years after the 
 12-12        effective date of its creation. 
 
 12-13        (B) If a zone is located in an area designated as an 
 12-14        urban redevelopment area before January 1, 1994, and 
 12-15        the effective date of the creation of the zone was on 
 12-16        or after January 1, 1992, but before January 1, 1994, 
 12-17        and no more than five qualifying housing units were 
 12-18        completed in that zone before January 1, 1996, such 
 12-19        zone shall exist for 14 years after the effective date 
 12-20        of its creation.  At the end of such 14 year period, 
 12-21        the zone and all exemptions established therein 
 12-22        pursuant to this Act shall be abolished.  The 
 12-23        exemption under this Act for such qualifying housing 
 12-24        construction in such zone which has been completed 
 12-25        before January 1, 1996, shall expire ten years after 
 12-26        the effective date of the creation of such zone in 
 12-27        which is located such completed construction.  The 
 12-28        schedule of reduction in the exemptions provided for 
 12-29        by paragraph (1) of this subsection shall begin on the 
 12-30        effective date of the creation of the zone for 
 12-31        qualifying housing construction completed before 
 12-32        January 1, 1996, and that schedule shall begin on 
 12-33        January 1, 1996, for qualifying housing construction 
 12-34        completed on or after January 1, 1996.  In no event 
 12-35        shall property be granted the exemption provided under 
 12-36        this subparagraph for more than ten years; 
 
 12-37        (3)(A) Any tax exemptions granted under this Act shall 
 12-38        be restricted to residential purpose improvements made 
 12-39        in any year during which an area has an enterprise 
 12-40        zone designation.  If the value of the improvements 
 12-41        exceed the value of the land, as of the date of the 
 12-42        creation of the zone, by a factor of eight or more, 
 12-43        then the full value of the real property shall be 
 12-44        eligible for the exemption granted under this Act.  In 
 
 
 
                                 -12- 
 
 
 
 13- 1        cases where local zoning allows for mixed use 
 13- 2        development on property included in a zone for 
 13- 3        residential purposes, the creation of the zone for 
 13- 4        residential purposes is not intended to discourage or 
 13- 5        prohibit development of other locally permissible or 
 13- 6        permitted uses.  However, nonresidential uses of 
 13- 7        property shall not be exempted from ad valorem 
 13- 8        taxation where found to exist or as may be developed 
 13- 9        in any zone for residential purposes created pursuant 
 13-10        to this Act. 
 
 13-11        (B) The only exception to the rule provided for in 
 13-12        subparagraph (A) of this paragraph shall be any urban 
 13-13        redevelopment area in which housing construction was 
 13-14        initiated and completed prior to zone creation.  Any 
 13-15        urban redevelopment area (URA) officially adopted by 
 13-16        the city council as of January 1, 1980, in which 
 13-17        housing units were built during the years 1980 through 
 13-18        1986 shall be eligible for consideration as urban 
 13-19        enterprise zones, provided that the requirements of 
 13-20        subsection (b) of Section 5 and subsection (b) of 
 13-21        Section 8 have been met.  Such action is deemed 
 13-22        consistent with the legislative intent of this Act. 
 13-23        The designation of appropriate zones, exemption 
 13-24        period, and schedule shall be determined by the city 
 13-25        council, provided that the exemption period and 
 13-26        schedule do not exceed ten years as provided herein 
 13-27        and are not less than five years; 
 
 13-28      (4) A zone for residential purposes shall not be 
 13-29      abolished or reduced in size nor shall the amounts of 
 13-30      exemptions from ad valorem taxation be altered by action 
 13-31      of the city council or board of commissioners after 
 13-32      adoption of a resolution or ordinance creating the zone; 
 13-33      and 
 
 13-34      (5) Notwithstanding paragraph (3) of this subsection, 
 13-35      subsequent to the creation of a zone, should the use of 
 13-36      property therein be converted to a use other than 
 13-37      completely for residential purposes, any exemption from 
 13-38      ad valorem taxation under this Act shall cease as of the 
 13-39      date the use of the property was converted. 
 
 13-40    (d) For zones created for mixed-use commercial and 
 13-41    residential purposes: 
 
 13-42        (1)(A) Real property in a zone which is exempt from ad 
 13-43        valorem taxation under this Act as a result of new 
 
 
 
                                 -13- 
 
 
 
 14- 1        construction or conversion shall be exempt for 100 
 14- 2        percent of its taxable value for the first five years, 
 14- 3        beginning in any year during which the area in which 
 14- 4        the property is located has an enterprise zone 
 14- 5        designation, 80 percent of its taxable value for the 
 14- 6        next two years, 60 percent of its taxable value for 
 14- 7        the next year, 40 percent of its taxable value for the 
 14- 8        next year, and 20 percent of its taxable value for the 
 14- 9        last year. 
 
 14-10        (B) Real property in a zone which is exempt from ad 
 14-11        valorem taxation under this Act as a result of 
 14-12        rehabilitation shall be limited to the value of 
 14-13        improvements added to the existing structure in any 
 14-14        year during which an area has an enterprise zone 
 14-15        designation and the value of the land in accordance 
 14-16        with paragraph (3) of this subsection.  At such time 
 14-17        as the value of the improvements added exceed the 
 14-18        value of the land, as of the date of the creation of 
 14-19        the zone, by a factor of eight or more, then the full 
 14-20        value of the improvements added shall be eligible for 
 14-21        the exemption granted under this Act.  Said real 
 14-22        property in such zone shall be exempt in accordance 
 14-23        with the following schedule: 100 percent of its 
 14-24        taxable value for the first five years, beginning in 
 14-25        any year during which the area in which the property 
 14-26        is located has an enterprise zone designation, 80 
 14-27        percent of its taxable value for the next two years, 
 14-28        60 percent of its taxable value for the next year, 40 
 14-29        percent of its taxable value for the next year, and 20 
 14-30        percent of its taxable value for the last year. 
 
 14-31        (C) Exemptions from ad valorem taxation of real 
 14-32        property within a zone under this Act may not be 
 14-33        granted for the taxable value of improvements which 
 14-34        are used for the primary purpose of the processing or 
 14-35        handling of hazardous or medical waste not generated 
 14-36        on the site where the improvement is located; 
 
 14-37      (2) A zone shall exist for ten years after the effective 
 14-38      date of its creation; 
 
 14-39      (3) Any tax exemptions granted under this Act shall be 
 14-40      restricted to residential or commercial purpose 
 14-41      improvements made in any year during which an area has 
 14-42      an enterprise zone designation.  If the value of the 
 14-43      improvements exceeds the value of the land, as of the 
 14-44      date of the creation of the zone, by a factor of eight 
 
 
                                 -14- 
 
 
 
 15- 1      or more, then the full value of the real property shall 
 15- 2      be eligible for the exemption granted under this Act; 
 
 15- 3      (4) A zone for mixed-use commercial and residential 
 15- 4      purposes shall not be abolished or reduced in size nor 
 15- 5      shall the amounts of exemptions from ad valorem taxation 
 15- 6      be altered by action of the city council or board of 
 15- 7      commissioners after adoption of a resolution or 
 15- 8      ordinance creating the zone." 
 
 15- 9                           SECTION 5. 
 
 15-10  Said Act is further amended by striking subsections (a) and 
 15-11  (b) of Section 10 thereof, which read as follows: 
 
 15-12    "(a) The creation of a zone shall become effective on 
 15-13    January 1, immediately following the adoption by the city 
 15-14    council of an ordinance creating the zone; provided, 
 15-15    however, that the effective date for the creation of a 
 15-16    zone may be postponed for up to two years by ordinance of 
 15-17    the city council. 
 
 15-18    (b) Exemptions from ad valorem taxes for city or county 
 15-19    purposes upon inventory or real property in a zone shall 
 15-20    become effective on January 1, immediately following the 
 15-21    adoption of the appropriate ordinance by the city council 
 15-22    or appropriate resolution by the board of commissioners, 
 15-23    respectively, unless the effective date is postponed as 
 15-24    provided in subsection (a) of this section.", 
 
 15-25  and inserting in their respective places the following: 
 
 15-26    "(a) The City of Atlanta shall establish the effective 
 15-27    date for the creation of a zone as January 1 of the year 
 15-28    that development is proposed to begin in the zone but 
 15-29    after adoption by the city council of an ordinance 
 15-30    creating the zone. 
 
 15-31    (b) Exemptions from ad valorem taxes for city or county 
 15-32    purposes upon inventory or real property in a zone may 
 15-33    become effective in any year during which an area has an 
 15-34    enterprise zone designation immediately following the 
 15-35    adoption of the appropriate ordinance by the city council. 
 15-36    Such exemptions may continue even if the area's enterprise 
 15-37    zone designation has terminated, subject to the other 
 15-38    limitations of this Act, but in no event shall such 
 15-39    property be exempt for more than ten years." 
 
 
 
 
 
                                 -15- 
 
 
 
 16- 1                           SECTION 6. 
 
 16- 2  All laws and parts of laws in conflict with this Act are 
 16- 3  repealed. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                 -16- 

Clerk of the House
Robert E. Rivers, Jr., Clerk
Last Updated on 04/28/98

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