A tax bill signed by President Donald Trump on Thursday could save taxpayers millions in taxpayer money by closing loopholes that have allowed many wealthy individuals and businesses to avoid paying federal income taxes, city officials said.
City officials said the changes will allow the city to collect the tax revenue from new condominium development that began in 2019.
The changes will mean that the city will collect an additional $7 million annually for property tax collection from new construction that is built within the city limits, city spokeswoman Kristin Paltrow said in a statement.
They are expected to reduce the city’s annual shortfall of $15 million in property tax revenue, she said.
The tax bill also allows the city of Atlanta to receive tax credits for tax-exempt bonds issued to finance new residential and office buildings.
The city’s bond debt is about $60 million.
City leaders said the change will help the city offset the $7.2 million in losses it has received from new developments that began last year.
Atlanta is already the first city in the nation to be required to collect property taxes on condominium developments.
The city had to file an amendment to its tax bill to include the new tax breaks, city Councilwoman Jennifer Carroll said.
Atlanta has been under pressure from many tax-exempt bondsholders to collect more property taxes, including in some neighborhoods that have been disproportionately affected by rising rents.
The new tax break could bring in an additional 10 percent to 20 percent in tax revenue to the city, Carroll said in an interview.
In 2018, the city collected $4.2 billion in tax revenues, which amounted to a $4 million tax reduction.
The amount was a record.