Tuesday, March 8, 2016

State House approves tax exemption for fulfillment centers

The Georgia House of Representatives has unanimously approved a bill that would exempt merchandise in stock at fulfillment centers from business inventory taxes in jurisdictions that offer a freeport exemption.  Normally, businesses with inventory are subject to business personal property taxation on tangible items including equipment and inventory.  House Bill 935 excludes goods and wares at fulfillment centers with a freeport exemption from personal property taxes when those items are stored for less than 12 months.  Fulfillment centers are used by companies such as Amazon to fulfill orders placed by customers online or by phone.

The City of Decatur does not offer a freeport exemption, so this would not affect fulfillment centers if we had any.  DeKalb County offers the freeport exemption, and this could expand tax relief to companies operating fulfillment centers in the county.

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