Thursday, May 5, 2016

Governor OK’s tax exemption for fulfillment centers

Governor Deal has approved a tax exemption for fulfillment centers in Georgia in jurisdictions that offer freeport exemptions.

In addition to real property taxes, businesses normally pay “personal property taxes” on business inventory. Many communities offer a freeport exemption which reduces personal property taxes the same way a homestead exemption reduces real property taxes. House Bill 935 expands the types of inventory eligible for exemption to include inventory at fulfillment centers. 

This expansion of freeport exemptions is part of a larger economic development strategy for Georgia. The Augusta Chronicle reported on the story behind the HB 935 last month:
…U.S. consumers are increasingly shifting toward e-commerce. That’s prompting retailers to develop distribution centers closer to urban areas to shorten delivery times as more companies promise same-day delivery and free shipping, said Curtis Spencer, president of the IMS Worldwide consulting firm…
“It [HB 935] will definitely make us competitive over other states,” said Jannine Miller, director of the Georgia Center of Innovation for Logistics, which is hosting this week’s [Georgia Logistics Summit] conference.
Commissioner of Economic Development Chris Carr said e-commerce is a targeted segment of the logistics industry.
“If you look as far as the eye can see, e-commerce is critically important,” he said. “We want to be a place companies want to locate and give them every reason to be here. That will help us do that.”… 

HB 935 was signed into law on May 3.

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