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tax_exemptions

Inventory Tax Exemption

Business inventory is exempt from state property taxes (0.25 mills). More than sixty percent of Georgia counties and cities have also adopted a Level One Freeport Exemption, set at 20, 40, 60, 80 or 100 percent of the inventory value. A Level One Freeport Exemption may 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 in Georgia 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 that are destined for shipment outside of Georgia for a period not to exceed 12 months

Local governments can expand the Freeport Exemption and authorize a call for a referendum to approve the creation of a Level Two Freeport Exemption, which would exempt from local property tax any business inventory or real property not covered in the Level One Freeport Exemption, including retail inventory. Like the Level One Exemption, counties and municipalities may choose to implement a Level Two Freeport Exemption at the 20, 40, 60, 80 or 100 percent level.

 

Contact GDEcD

To get help expanding or relocating a business in Georgia, contact the Georgia Department of Economic Development or call 404.962.4000.

To get help with specific tax questions for a business in Georgia, contact the Georgia Department of Revenue.

More About Georgia Benefits

Georgia’s industry-specific Project Analysts are available to help you with a wide range of business needs:

  • Site and building services
  • Location data
  • Community contacts and facilitation
  • Cost environment analysis
  • Coordination with state agencies

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