Economic & Community Development

BIDs are special districts in which property owners agree to be taxed at a higher rate than the rest of the community in order to pay for expanded services that are not already being provided to the county as a whole. BIDs may be administered by local governments, DDAs and non-profits. What are the benefits of being part of a BID?

There are many benefits to being part of a Business Improvement District. BIDs give local businesses the power to effect changes that will benefit them and their local community. Improvements may include extra safety/security, sanitation, improved promotion of the area, as well as business recruitment and retention efforts. How do I start a BID in my commercial district?

A BID is created by petition within the area designated which must include:

Plan for the area, which includes:

• a. Map and description of boundaries b. Description of the supplemental services includes but not limited to: (advertising, promotion, sanitation, security, and business recruitment and development) c. Proposed maximum millage (1 to 3 mill max OCGA 48-5-350) to be levied and/or the % of business license surcharge d. Budget e. Time frame for carrying out the plan f. Optional- design guidelines or rehabilitation standards
• Agreement in writing of 51% of the taxpayers listed on the digest for the area outlined or, those taxpayers who own (by dollar value) 51% of the assessed property (both real and personal) within the area.» Residential property is not excluded from millage assessment » 10-year sunset on the BID, but can be renewed by same process. Local governments may also set shorter sunset periods at their option.

Can Macon-Bibb County assist in creating a BID?

Yes. If your business is located in a commercial or industrial district in Macon-Bibb County and you are interested in learning more about the benefits and process to establish a Business Improvement District, please Contact Us

Community Improvement Districts (CIDs) are special districts where property owners agree to a self imposed tax to be used for improving the district. CIDs are a good way to leverage state and federal tax dollars for roads and other major infrastructure. As authorized under the Georgia Constitution, creation of a CID requires a local act of the General Assembly. The governing body of each CID is designated by the Legislature and may be County, or administrative body that shall include representation of the county within the CID. In addition to a local act of the General Assembly, a CID requires a resolution of the applicable County consenting to the creation of the CID and written consent by a majority of the owners of real property within the CID and consent of the owners within the CID who constitute (represent) at least 75% by value of all real property which will be subject to taxes, fees and assessments. Through a CID, a special taxing district is created to pay for exceptional infrastructure needs such as:

• Street/road construction and maintenance;
• Parks and recreation facilities;
• Storm water and sewage collection and disposal systems;
• Water development, storage, treatment, purification and distribution facilities; public transportation;
• Terminal and dock facilities; and parking facilities; and
• “Such other services and facilities as may be provided for by general law.”

Property used for residential, agricultural or forestry purposes may not be assessed. Assessments cannot exceed 2.5% of the assessed value of the real property, i.e. 25 mills. Bonded debt is permitted but such debt may not be considered an obligation of the State or any other government other than the CID. If you are interested in creating a CID please Contact Us for assistance.

Tax Allocation Districts or TADs, often called Tax Increment Financing (TIF) in other states, are a popular mechanism for revitalizing blighted or underutilized areas such as brownfields, declining commercial corridors and industrial sites. The process involves designating a Tax Allocation District, establishing its current tax base floor and then dedicating future taxes over and above that floor for a given period of time to pay the costs (often but not always through issuing bonds) of the infrastructure, buildings or other improvements needed to spur new, higher density development. TAD funds may be used for a wide range of development activities. Cities, counties and school systems may all decide independently whether to participate in a TAD. How do TADs work?

As the public and private improvements are made in a TAD, the area should realize a significant increase in taxable value. The increased property tax revenues are utilized to pay off the bonds that financed the public improvements. TADs are intended to be used in urbanized or developed areas exhibiting “blight”, to promote redevelopment or preservation of historic or natural assets. They work well in brownfield or grayfield situations but are not intended for undeveloped rural property. What are the requirements to create a TAD?

A TAD can be created in blighted urban areas. In Macon-Bibb County, these areas were identified in the Urban Redevelopment Plan. A Tax Allocation District may be created and approved in public hearings. The plan shall include the boundaries of the district and specify the initial tax allocation increment base. All TAD revenues set aside may not cumulatively exceed 10% of the local tax base. Cities, counties and school systems within a proposed TAD must individually agree in writing to assign their tax revenues to a TAD. Funds are set aside from the district to finance redevelopment costs either through local financing or through the issuance of bonds. Maximum maturity of such bonds shall be 30 years. What can be paid with TAD funds?

Funds raised by TADs can be used to pay for a variety of uses, including:

• renovate, construct, preserve, restore expand or demolish buildings for business, commercial, industrial, government, education, public or private housing, social activity, governmental services;
• historic properties
• green spaces
• mass transit and pedestrian facilities
• telecommunications infrastructure
• water and sewer lines; streets; sidewalks; parking facilities; public parks; building construction; building rehabilitation, housing, and land assembly.

Does Macon-Bibb County have any TADs?

Yes. Macon-Bibb County approved the creation of three TADs in its Central Business District. They are:

• Second Street Tax Allocation District
• Bibb Mill Center Tax Allocation District
• Renaissance on the River Tax Allocation District

Historic tax credit incentives were designed to encourage the continued use of historic properties through rehabilitation. There are three different types of financial incentives available to owners who plan to rehabilitate their historic buildings. The federal Rehabilitation Investment Tax Credit is available only to properties that will be used in an income-producing capacity after rehabilitation for commercial, professional, or residential rental purposes. The Georgia Preferential Property Tax Assessment and the State Income Tax Credit for Rehabilitated Historic Property are available to both private residential properties as well as income-producing properties. Details of financial incentives include: Federal Rehabilitation Investment Tax Credit (RITC) – A federal income tax credit equal to 20% of rehabilitation expenses. Available ONLY for income-producing properties. The application is first reviewed by the Historic Preservation Division (HPD), then forwarded to the National Park Service for final decision. Program is available nationwide. State Income Tax Credit for Rehabilitated Historic Property – A state income tax credit of 25% of rehabilitation expenses. The credit is capped at $100,000 for personal residences and $300,000 for income-producing properties. This program’s percentages and caps are effective for projects completed after January 1, 2009. State Preferential Property Tax Assessment for Rehabilitated Historic Property – Freezes the county property tax assessment for over 8 years. Available for personal residences as well as income-producing properties. Owner must increase the fair market value of the building by 50 – 100%, depending on its new use. Additional information about these programs can be found on video: http://www.youtube.com/user/GAHPD How do I know if my property is eligible for Historic Tax Credits?

The property must be a “certified structure,” which means it must be listed in, or eligible for listing in, the National/Georgia Register(s) of Historic Places, either individually or as a contributing structure in a National/Georgia Register historic district. The Georgia Historic Preservation Division must certify the rehabilitation. If your property is eligible, but not yet listed in the National/Georgia Registers, you must pursue getting it formally listed. Can Macon-Bibb County assist with determining eligibility and the application process?

Yes. If you need assistance in determining if your building qualifies for State, Federal Historic Tax Credits and State property tax assessment freeze, or if you need assistance filling out the application, please Contact Us

Opportunity Zones are geographically designated zones that provide Job Tax Credits for the businesses located in these zones. New or existing businesses that create two or more jobs can receive a tax credit of up to $3,500 per job. The job tax credits can be used against 100 percent of the business’ income tax liability and state payroll withholding. Credits are available for these areas that are designated by Georgia’s Department of Community Affairs (DCA) as Opportunity Zones. What are the benefits of being located in an Opportunity Zone? Opportunity Zone Tax Credit Incentives include:

the maximum Job Tax Credit allowed under law – $3,500 per job createdthe lowest job creation threshold of any job tax credit program – 2 jobsuse of Job Tax Credits against 100 percent of income tax liability and Withholdingexpansion of the definition of “business enterprise” to include all businessesHow do I know if I am in an Opportunity Zone?

Several properties in Macon-Bibb County recently received Opportunity Zone designation. To find out if you are in an Opportunity Zone, please view the Macon-Bibb County Opportunity Zone Map How do I claim my Job Tax Credits against my Georgia State Income Tax?

Step 1: Review the Opportunity Zone Brochure to ensure your business or property could benefit from the Opportunity Zone Designation Step 2: Complete Opportunity Zone Certification request and mail to: Macon-Bibb County Economic and Community Development Department 200 Cherry Street, Suite 300, Macon, GA 31201 TEL: (478) 751-7190 – TDD: (478) 751-7166 – FAX: (478) 751-7390 Once Macon-Bibb County verifies your business is located in an Opportunity Zone, the County will complete Part Two of the Certification and forward the form to DCA for final approval. DCA will sign and mail back the form to the business owner. Step 3: Attach the signed Certification form and file your tax returns using the appropriate form(s): Job Tax Credit – Form IT-CA and /or Withholding Benefit – Form IT-WH Please note: every business located in an Opportunity Zone must request Certification prior to claiming the job tax credits against their State income taxes. How do I apply for Opportunity Zone designation for my property or building?

If you are the owner of a vacant, blighted or underutilized property or building in Macon-Bibb County and you are interested in having your property designated an opportunity zone, contact us to discuss the designation process.

The State Enterprise Zone program intends to improve geographic areas within cities and counties that are suffering from disinvestment, underdevelopment, and economic decline, encouraging private businesses to reinvest and rehabilitate such areas. What incentives do Enterprise Zones provide for property owners?

Enterprise Zones provide property tax abatement or exemption OCGA 36-88-8(a)(1) and abatement or reduction in occupation taxes, regulatory fees, building inspection fees, and other fees that would otherwise be imposed on qualifying business — OCGA §36-88-9(a) The Enterprise ordinance include a schedule of exemptions, reductions and abatement’s. The benefits include: (A) 100% of the property taxes shall be exempt for the first 5 years; (B) 80%t of the property taxes shall be exempt for the next 2 years; (C) 60% of the property taxes shall be exempt for the next year; (D) 40% of the property taxes shall be exempt for the next year; and (E) 20%t of the property taxes shall be exempt for the last year. What property may qualify for Enterprise Zone incentives?

In order for a property to qualify for Enterprise Zone incentives, it must first be located in an Enterprise Zone. 1. Additionally, a minimum of five new jobs must be maintained for a qualifying business or service enterprise to maintain eligibility for the tax exemption 2. If the project consists of new residential construction, residential rehabilitation, or other rehabilitation of an existing structure and the value of the improvement exceeds the value of the land by a ratio of five to one, then the exemption schedule in the ordinance shall also apply whether or not the project is carried out by a qualifying business or service enterprise. 3. In no event shall the value of the property tax exemptions granted to qualifying business and service enterprises within an enterprise zone created by Macon-Bibb County, exceed 10 percent of the value of the property tax digest of the creating jurisdiction or jurisdictions. Are there any areas in Macon-Bibb that are currently designated Enterprise Zone?

Yes. Macon-Bibb County designated two areas as Enterprise Zones in South and East Macon. Please click on links below for maps.

The HUBZone Empowerment Contracting Program is designed to promote business and job opportunity in economically-distressed urban and rural areas by increasing federal contracting activity in those areas. Most of Macon-Bibb County areas are located on a HUBZone To qualify, a small business’ principal office must be in a HUBZone and at least 35 percent of its employees must reside in a HUBZone, although it can be a different HUBZone. The firm must also be completely owned and controlled by U.S. citizens. Contracts reserved for HUBZone firms can be awarded through competition limited to qualified HUBZone firms or on a sole-source basis. Another option allows contracting officers to give HUBZone firms a price preference in bidding open to non-HUBZone firms. What are the benefits of locating my business on a HUBZone?

There are many benefits of locating your business in a HUBZone if your business provides services or products to the Federal Government. The program’s benefits for HUBZone-certified companies include: • Competitive and sole source contracting • 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities. The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified small business concerns. How do I know if my business is eligible?

To qualify for the program, a business (except tribally-owned concerns) must meet the following criteria: • It must be a small business by SBA standards • It must be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe • Its principal office must be located within a “Historically Underutilized Business Zone,” which includes lands considered “Indian Country” and military facilities closed by the Base Realignment and Closure Act • At least 35% of its employees must reside in a HUBZone. If you are eligible, visit Applying for the HUBZone Program, as well as Maintaining the HUBZone Certification. Don’t know if you are in a HUBZone? Check out the HUBZone Map.