A CID is a Community Improvement District. It is a geographically defined district in which commercial and industrial property owners vote to impose a self-tax to fund community improvements. Residential and agricultural properties are included in the CID boundaries, but are not taxed.
In 2010, the Council for Quality Growth created this video to explain CIDs.
A CID is created through state enabling legislation and a vote by the majority of the corporate property owners in the defined district. It takes the agreement of a simple majority of the commercial property owners within the district to create or expand a Community Improvement District. In addition, it is required that this simple majority of owners must represent at least 75 percent of the taxable value of the commercial property located within the proposed CID.
CIDs are funded by a self-imposed and self-regulated ad valorem real estate tax on commercial properties within the district. The tax consists of additional mills being paid by the commercial property owners. A mill is equal to 1/10th of 1% of the assessed value of the property.
Non-residential property owners within the CID pay an additional 3 mils (3 dollars for every $1,000 in assessed property value) of property taxes to fund the CID’s operations. This is voted on annually.
CID funds do not replace public funds. They provide required match funding for grants or federally funded projects; initiate project development, by funding studies or preliminary engineering; and s supplement funding from local government partners. The CID provides a forum to work alongside other local stakeholders and public and private sector leaders.
The Georgia Constitution specifies that funds collected through a CID may be used for seven types of applications:
• Water
• Public transportation
• Street and road construction and maintenance
• Parks and recreational areas and facilities
• Storm water and sewage
• Parking, terminal and dock facilities
• Other
The participating property owners define the purpose of the CID and elect a board of directors to represent their interests. The board is ultimately responsible for determining funding and managing the process and for identifying and retaining staffing resources necessary to conduct day-to-day operations.