Clarkston's Community Redevelopment Tax Incentive Program
On February 4th, City Council adopted a new ordinance to help combat blight in Clarkston. Clarkston's Community Redevelopment Tax Incentive Program ordinance creates a process for declaring properties maintained in a blighted condition, establishes a mechanism to tax those properties at a higher rate until they are brought into compliance.
The proposed ordinance can be read here.
The following is a brief Q&A on key aspects of the program.
Q: Which properties will qualify for this proposed tax increase?
A: Under this ordinance, a qualifying blighted property must present two or more blighted conditions as defined in the ordinance. The ordinance targets the worst properties that are deemed uninhabitable or unsafe for sustained periods of time. The ordinance does not apply to occupied properties, or properties with less serious problems, such as ones that are in violation solely because of aesthetic reasons.
Q: What’s the process for identifying blighted properties that would be subject to increased taxation?
A: An inspection of the property would be performed, a report written, and the code official would make a determination in writing that the property is blighted as defined by the ordinance and qualifies for the increased taxation. The property owner would then be served with this notice. The property owner would have 30 days from receipt to request a hearing in Municipal Court. A hearing would be set and notice given by legal advertisement. At the hearing, evidence would be presented, and the Judge would affirm or reverse the code official’s determination. Property owners could then appeal to Superior Court.
Q: How does the increase in taxation work?
A: If the property is upheld as blighted, the City’s portion of the property tax bill would be increased by multiplying the City’s millage rate by 10. Currently, the City’s 2024 millage rate is 11.53, which means a property owner pays $11.53 for every $1,000 of assessed property value. Under this ordinance, the property would instead be taxed at $115.30 per $1,000 of assessed value.
Q: What will the City do with this new revenue?
A: Any revenue arising from the increased rate of ad valorem taxation shall be used only for community redevelopment purposes, including defraying the cost of the City’s programs to close, repair or demolish unfit structures. The hope is this ordinance will encourage those who cannot maintain their properties to sell them to those who can.
Q: Will the taxes go back down when the property comes into compliance?
A: Yes. An owner whose property has been declared blighted may petition the code official to lift the designation after completion of work required under a plan of remedial action or required by court action. Once the blighted designation is lifted, the property then becomes eligible for a decreased rate of taxation. At such time, the City’s normal millage rate (currently 11.53 mills) will be cut in half for up to four years.
Q: If a property owner is unresponsive after 30 days what's the procedure then?
A: If a property owner is unresponsive after 30 days, then they will not have a hearing in Recorder's Court. The property will still then qualify for the increased property tax.
Q: Where has this type of ordinance been used in other municipalities?
A: Similar initiatives have been successfully implemented in cities throughout Georgia, including Albany, College Park, Griffin, Forrest Park, Savannah, and Stone Mountain.