Friday, December 5, 2014

Doraville offers freeport exemption in 2015

Last month, voters in Doraville approved a freeport tax exemption for personal property (property which usually consists of business inventory). The measure passed was for a “level 1” exemption, meaning that there are still some types of business inventory that would remain taxable. A “level 2” freeport exemption would exempt more types of business inventory. Freeport exemptions for businesses work similarly to homestead exemptions for residents by exempting at least a portion of the property’s value. To some extent, freeport exemptions reduce the commercial share of the tax base relative to the residential share. Decatur does not provide a freeport exemption. 

From the AJC last month:
Doraville voters pass manufacturing tax breaks 
Doraville voters approved three tax breaks for businesses during last week’s election. The initiatives, known as freeport exemptions, are intended to attract and retain manufacturing and logistics industries, according to the city. Voters passed each of the ballot measures by about 2-to-1 margins. The exemptions on local ad valorem taxes apply to: 
  • Inventory of goods in the process of being manufactured or produced, including raw materials and partly finished goods. 
  • Finished goods produced in Georgia within the last 12 months 
  • Finished goods stored in Georgia within the last 12 months and destined for shipment out of state
Residents in the city of Stone Mountain approved a similar tax break, making them the first two DeKalb County cities to do so. The county adopted a version of the freeport exemption in 1977.

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