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The Freeport Exemption is an exemption on the stock of Georgia producers, wholesalers, and distributors. This beneficial exemption encourages manufacturing and different base industries to find, make investments, and/or keep in Georgia. The residents of every Georgia County vote on whether or not the speed of the exemption is 20, 40, 60, 80 or 100% of the stock worth. Georgia fiercely competes with states resembling Alabama and South Carolina that exempt ALL inventories. Make Georgia earn your tax {dollars} and your corporation!
Stock Eligible for Freeport Exemption
- Uncooked Supplies and work-in-progress stock of Georgia producers. Uncooked supplies are elements that considerably change throughout manufacturing or processing to create a brand new product. Uncooked supplies could be grains, minerals, and petroleum or objects resembling casters, nuts, bolts, or wheels.
- Completed items stock of Georgia producers which can be held for lower than 12 months. Most producers do have some inventory stock readily available longer than 12 months from the manufacturing date. Doable exceptions embody firms that manufacture to order or use a just-in-time stock system.
- Completed items stock saved for lower than 12 months in a warehouse, dock, or wharf, with a closing vacation spot exterior of Georgia. Drop shippers, distributors, and wholesalers normally qualify for the exemption based mostly on this stipulation.
- Retail stock doesn’t qualify for this exemption (but)! On April 17, 2012, Governor Nathan Deal signed HB 48-Freeport Growth and Elimination of Native Stock tax. This created a Degree 2 Freeport exemption that applies to ALL enterprise inventories that didn’t qualify for Degree 1 Exemption. In different phrases, retail stock might quickly be exempt in Georgia. Nevertheless, native governments should first name for a referendum to approve of the Degree 2 Exemption and to find out the exemption charges. Different ineligible objects are gas, packaging provides, workplace provides, spare elements, retailer stock-in-trade, and unrecovered or unextracted pure assets.
Freeport Exemption Course of
Step one in qualifying for the exemption is to finish the Freeport Exemption utility (PT-50PF). Many Georgia firms lose out on Freeport as a result of they’re unaware of the exemption or they miss the deadlines. Please word that the burden of acquiring, finishing, and submitting the Freeport utility kind is fully upon the taxpayer.
An appraiser from the Tax Assessors Workplace will normally schedule a web site go to for first time candidates to verify the enterprise goal and site. This obligatory second step permits the county appraiser to assemble firsthand details about the enterprise. The location go to could be a superb alternative to ask questions in regards to the exemption, to make clear any points, or to have your tax marketing consultant meet with the appraiser.
Lastly, the Tax Assessors Workplace will notify you as soon as the Freeport utility submitted is accepted by the Board of Tax Assessors. This approval doesn’t imply that the Freeport return shall be accepted as filed. If there are any errors, inconsistencies, or inadequate documentation on the shape, the exemption could be lowered or eradicated.
As Georgia recovers from the financial recession, enterprise homeowners are searching for methods to reinvest of their firms and to reduce taxes. The Freeport Exemption is an incentive that may complement your total enterprise tax technique. Do not depart cash on the desk!
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Source by Angelica Moss