§ 9-68. Amounts of tax exemption.

(a)

For zones created for industrial or mixed-use commercial and industrial purposes:

(1)

Real property in a zone which is exempt from ad valorem taxation under this Act shall be exempt for 100 percent of its taxable value for the first five years after the creation of the zone in which the property is located, 80 percent of its taxable value for the next five years, 60 percent of its taxable value for the next five years, 40 percent of its taxable value for the next five years, and 20 percent of its taxable value for the last five years;

(2)

Real property in a zone which is exempt from ad valorem taxation under this Act as a result of rehabilitation shall be limited to the value of improvements added to the existing structure after the creation of the zone and the value of the land in accordance with section 9-67(b)(1). At such time as the value of the improvements added exceed the value of the land, as of the date of the creation of the zone, by a factor of three or more, then the full value of both the improvements added and the land shall be eligible for the exemption granted under this Act. Said real property in such zone shall be exempt in accordance with the following schedule: 100 percent of its taxable value for the first five years after the creation of the zone, 80 percent of its taxable value for the next five years, 60 percent of its taxable value for the next five years, 40 percent of its taxable value for the next five years, and 20 percent of its taxable value for the last five years;

(3)

Inventories in a zone which are exempt from ad valorem taxation under this Act shall be exempt from 100 percent of their taxable value for 25 years after the creation of that zone;

(4)

A zone shall exist for 25 years after the effective date of its creation and at the end of that period the zone and all exemptions established therein pursuant to this Act shall be abolished;

(5)

Except as provided in paragraph (4) of this subsection, a zone may only be abolished or decreased in size by appropriate ordinance of the city council, approved by a majority of the registered voters of the city voting in a special election which shall be required to be called for such purpose. No such special election to approve the abolition or decrease in size of a zone may be called within five years from the effective date of the creation of that zone. If the results of the election are in favor of the abolition or decrease in size of that zone, it shall be abolished or decreased, respectively, at the end of the fifth year following that special election; and

(6)

The amount of the exemption for property in a zone may not be changed and the type of property subject to an exemption in a zone may not be decreased by the city council or board of commissioners after the passage of the respective city ordinance or county resolution creating that exemption under this Act, unless the zone and all exemptions on property therein are abolished as provided in this subsection.

(b)

For zones created for commercial purposes:

(1)

Real property in a zone which is exempt from ad valorem taxation under this Act shall be exempt for 100 percent of its taxable value for the first five years after the creation of the zone in which the property is located, 80 percent of its taxable value of the next two years, 60 percent of its taxable value for the next year, 40 percent of its taxable value for the next year, and 20 percent of its taxable value for the last year;

(2)

Real property in a zone which is exempt from ad valorem taxation under this Act as a result of rehabilitation shall be limited to the value of improvements added to the existing structure after the creation of the zone and the value of the land in accordance with section 9-67(b)(1). At such time as the value of the improvements added exceed the value of the land, as of the date of the creation of the zone, by a factor of three or more, then the full value of both the improvements added and the land shall be eligible for the exemption granted under this Act. Said real property in such zone shall be exempt in accordance with the following schedule: 100 percent of its taxable value for the first five years after the creation of the zone, 80 percent of its taxable value for the next two years, 60 percent of its taxable value for the next year, 40 percent of its taxable value for the next year, and 20 percent of its taxable value for the last year;

(3)

A commercial zone shall exist for ten years after the effective date of its creation and at the end of that period the zone and all exemptions established therein pursuant to this Act shall be abolished;

(4)

A zone for commercial purposes shall not be abolished or reduced in size nor shall the amounts of exemptions from ad valorem taxation be altered by action of the city council or board of commissioners after adoption of a resolution or ordinance creating the zone.

(c)

For zones created for residential purposes:

(1)

a.
Real property in a zone which is exempt from ad valorem taxation under this Act as a result of new construction or conversion shall be exempt for 100 percent of its taxable value for the first five years after the creation of the zone in which the property is located, 80 percent of its taxable value for the next two years, 60 percent of its taxable value for the next year, 40 percent of its taxable value for the next year, and 20 percent of its taxable value for the last year.

b.

Real property in a zone which is exempt from ad valorem taxation under this Act as a result of rehabilitation shall be limited to the value of improvements added to the existing structure after the creation of the zone and the value of the land in accordance with paragraph (3) of this subsection. At such time as the value of the improvements added exceed the value of the land, as of the date of the creation of the zone, by a factor of eight or more, then the full value of the improvements added shall be eligible for the exemption granted under this Act. Said real property in such zone shall be exempt in accordance with the following schedule: 100 percent of its taxable value for the first five years after the creation of the zone, 80 percent of its taxable value for the next two years, 60 percent of its taxable value for the next year, 40 percent of its taxable value for the next year, and 20 percent of its taxable value for the last year.

(2)

a.
Except as provided in subparagraph (b) of this paragraph, a zone shall exist for ten years after the effective date of its creation and at the end of this period the zone and all exemptions established therein pursuant to this Act shall be abolished.

b.

If a zone is located in an area designated as an urban redevelopment area before January 1, 1994, and the effective date of the creation of the zone was on or after January 1, 1992, but before January 1, 1994, and no more than five qualifying housing units were completed in that zone before January 1, 1996, such zone shall exist for 14 years after the effective date of its creation. At the end of such 14-year period, the zone and all exemptions established therein pursuant to this Act shall be abolished. The exemption under this Act for such qualifying housing construction in such zone which has been completed before January 1, 1996, shall expire ten years after the effective date of the creation of such zone in which is located such completed construction. The schedule of reduction in the exemptions provided for by paragraph (1) of this subsection shall begin on the effective date of the creation of the zone for qualifying housing construction completed before January 1, 1996, and that schedule shall begin on January 1, 1996, for qualifying housing construction completed on or after January 1, 1996. In no event may property be granted the exemption provided under this subparagraph for more than ten years.

(3)

a.
Any tax exemptions granted under this Act shall be restricted to residential purpose improvements made after the effective date of the creation of the zone. If the value of the improvements exceed the value of the land as of the date of the creation of the zone by a factor of eight or more, then the full value of the real property shall be eligible for the exemption granted under this Act. In cases where local zoning allows for mixed use development on property included in a zone for residential purposes, the creation of the zone for residential purposes is not intended to discourage or prohibit development of other locally permissive or permitted uses. However, nonresidential uses of property will not be exempted from ad valorem taxation where found to exist or as may be developed in any zone for residential purposes created pursuant to this Act.

b.

The only exception to the rule provided for in subparagraph (3)a of this paragraph shall be any urban redevelopment area in which housing construction was initiated and completed prior to zone creation. Any urban redevelopment area (URA) officially adopted by the city council as of January 1, 1980, in which housing units were built during the years 1980 through 1986 shall be eligible for consideration as urban enterprise zones, provided that the requirements of section 9-65(b) and section 9-68(c) have been met. Such action is deemed consistent with the legislative intent of this Act. The designation of appropriate zones, exemption period, and schedule shall be determined by the city council, provided that the exemption period and schedule do not exceed ten years as provided herein and are not less than five years.

(4)

The determination of whether or not a structure qualifies as an historic multifamily structure shall be based upon a plan for historic preservation which contains standards and criteria for such determination and which plan has been duly adopted by the city council. Further, all rehabilitation improvements to any historic structure shall be consistent with Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings issued by the Secretary, U.S. Department of the Interior, as revised 1983 or as subsequently amended.

(5)

A zone for residential purposes shall not be abolished or reduced in size nor shall the amounts of exemptions from ad valorem taxation be altered by action of the city council or board of commissioners after adoption of a resolution or ordinance creating the zone.

(6)

Notwithstanding paragraph (3) of this subsection, subsequent to the creation of a zone, should the use of property therein be converted to a use other than completely for residential purposes, any exemption from ad valorem taxation under this Act shall cease as of the date the use of the property was converted.

(d)

For zones created for mixed-use commercial and residential purposes:

(1)

a.
Real property in a zone which is exempt from ad valorem taxation under this Act as a result of new construction or conversion shall be exempt for 100 percent of its taxable value for the first five years after the creation of the zone in which the property is located, 80 percent of its taxable value for the next two years, 60 percent of its taxable value for the next year, 40 percent of its taxable value for the next year, and 20 percent of its taxable value for the last year.

b.

Real property in a zone which is exempt from ad valorem taxation under this Act as a result of rehabilitation shall be limited to the value of improvements added to the existing structure after the creation of the zone and the value of the land in accordance with paragraph (3) of this subsection. At such time as the value of the improvements added exceed the value of the land, as of the date of the creation of the zone, by a factor of eight or more, then the full value of the improvements added shall be eligible for the exemption granted under this Act. Said real property in such zone shall be exempt in accordance with the following schedule: 100 percent of its taxable value for the first five years after the creation of the zone, 80 percent of its taxable value for the next two years, 60 percent of its taxable value for the next year, 40 percent of its taxable value for the next year, and 20 percent of its taxable value for the last year.

c.

Exemptions from ad valorem taxation of real property within a zone under this Act may not be granted for the taxable value of improvements which are used for the primary purpose of the processing or handling of hazardous or medical waste not generated on the site where the improvement is located.

(2)

A zone shall exist for ten years after the effective date of its creation and at the end of this period the zone and all exemptions established therein pursuant to this Act shall be abolished.

(3)

Any tax exemptions granted under this Act shall be restricted to residential or commercial purpose improvements made after the effective date of the creation of the zone. If the value of the improvements exceeds the value of the land as of the date of the creation of the zone by a factor of eight or more, then the full value of the real property shall be eligible for the exemption granted under this Act.

(4)

The determination of whether or not a structure qualifies as a historic multifamily structure shall be based upon a plan for historic preservation which contains standards and criteria for such determination and which plan has been duly adopted by the city council. Further, all rehabilitation improvements to any historic structure shall be consistent with Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings issued by the Secretary, U.S. Department of the Interior, as revised 1983 or as subsequently amended.

(5)

A zone for mixed-use commercial and residential purposes shall not be abolished or reduced in size nor shall the amounts of exemptions from ad valorem taxation be altered by action of the city council or board of commissioners after adoption of a resolution or ordinance creating the zone.

(1988 Ga. Laws, page 4164, § 8; 1989 Ga. Laws, page 4342, § 1; 1990 Ga. Laws, page 3765, § 2; 1991 Ga. Laws, page 3642, §§ 3, 4; 1994 Ga. Laws, page 5055, §§ 6, 7; 1996 Ga. Laws, page 3623, § 1)