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Freeport Exemption
The governing authority of any county or municipality may elect, with the approval of the voters, to exempt the following types of tangible personal property:
- Inventory of goods in the process of being manufactured or produced including raw materials and partly finished goods;
- Inventory of finished goods manufactured or produced within this State held by the manufacturer or producer for a period not to exceed 12 months;
- Inventory of finished goods on January 1 that are stored in a warehouse, dock, or wharf which are destined for shipment outside this State for a period not to exceed 12 months;
The percentage of exemption can be set at 20, 40, 60, 80 or 100 percent of the inventory value. Over sixty percent of Georgia counties and cities have adopted the Freeport Exemption at some level.
Application for freeport exemption should be made with the Board of Tax Assessor's within the same time period that returns are due in the county. Applications filed after that time can receive a partial exemption for that year up to June 1.
(O.C.G.A. § 48-5-48.1, O.C.G.A. § 48-5-48.2)
Computer Equipment Sales Tax Exemption
Computer equipment purchased or leased after January 1, 2001 for use in a Georgia high-technology company, and exceeding the annual threshold of $15 million will be exempt from sales and use tax. High-technology companies are specified as those with SIC 3674, 4812-4813, 4822, 7371-7379, 8711, or 8721-8733.
The term "computer equipment" means any individual terminal or organized assembly of hardware, including but not limited t
- Central processing units
- Scanners
- Printers
- Electronic data storage devices
- Memory chips
- Data transmission equipment
- Software products including operating systems and library and maintenance routines
- Other related peripheral equipment
Pollution Equipment Tax Exemption
If a piece of new or replacement equipment has as its primary purpose air or water pollution control, you may receive both sales tax and property tax exemptions. First, submit the appropriate paperwork to the Department of Revenue for sales tax exemption approval. The Department's approval will then entitle you to property tax exemption for that equipment.
Manufacturing Machinery Sales Tax Exemption
Machinery that is purchased or leased for direct use in manufacturing tangible personal property is exempt from sales and use tax when the machinery is:
- Incorporated the first time into a new manufacturing plant located in this state
- Bought to replace or upgrade machinery in a manufacturing plant presently existing in the state
- Incorporated as additional machinery for the first time into a manufacturing plant presently existing in this state
- Incorporated into and used in the construction or operation of a clean room of class 100 or less, provided that such clean room is used directly in the manufacture of tangible personal property (does not include the building or any permanent, non-removable component of the building that houses such clean room)
- Incorporated into any telecommunications manufacturing facility and used for the primary purpose of improving air quality in advanced technology clean rooms of class 100 or less, provided such clean rooms are used directly in the manufacture of tangible personal property
Additional exemptions include:
Machinery purchased, or leased, to be used directly in the remanufacture of aircraft engines, parts and components on a factory basis
- Tangible personal property consumed in the performance of a contract between the US Government and a contractor employing 500 or more full-time employees engaged in manufacturing
- Replacement or repair parts that restore the machinery to its original condition or does not upgrade machinery that is used directly in the manufacture of tangible personal property at an existing manufacturing plant. Such term shall not include spare parts purchased with machinery that is incorporated into a new plant. This will be phased-in over 5 years at 20% increases per year, from 2001 at 20% until completely exempted in 2005. This exemption applies to the first $150,000 of the sales price of each replacement or part, regardless of the method of invoicing or billing.
If machinery qualified for exemption is being purchased or leased for expansion of an existing manufacturing plant, the additional machinery will qualify for exemption if its acquisition results in a minimum increase in the productive capacity of the plant of 15%. The purchaser or lessee shall maintain sufficient records to substantiate the increase in plant productive capacity showing the production year immediately preceding the installation of the additional machinery and for the year immediately following completion of such installation.
MISCELLANEOUS FINANCIAL INCENTIVES
Fee/Payment in Lieu of Taxes
Companies meeting specific requirements regarding job creation and investment a FILOT/PILOT plan may be available.
OPERATIONAL INCENTIVES
Electricity Rate Discount/Negotiation
Depending on the customers requirements, it is possible for a company to negotiate for discounted rates between OREMC and GA Power
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