Freeport Tax Exemption to appear on May ballot

HIAWASSEE, Ga.- A referendum that could ease the tax burden for local business owners will appear on the May 19 general primary ballot. Towns County Commissioner Cliff Bradshaw informed FYN last year that it was an option that he was considering in expectation of attracting economic development to the area. The formal decision to include the question on the spring ballot was announced last week during a special-called meeting. If approved by the voters, the referendum will allow business owners to store merchandise and production supplies in their shops, tax-free, for a year’s time.

As of Jan. 1, 2016, business inventory became exempt from state property taxes.  According to Georgia.org, nearly all (93 percent) of Georgia’s counties and over 140 of its cities have adopted a Level One Freeport Exemption, set at 20, 40, 60, 80 or 100 percent of the inventory value.

Towns County opted for a 100-percent exemption.

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

If approved, application for Freeport Exemption should be made with the Board of Tax Assessors within the same time period that returns are due in the county.

In addition to Freeport Exemption, Towns County Sole Commissioner Cliff Bradshaw requested that the Board of Elections include a Special Purpose Local Option Sales Tax (SPLOST) referendum on the May ballot.

SPLOST is an optional one percent county sales tax used to fund capital outlay projects proposed by the county government and participating qualified municipal governments. In general, county and municipal governments may not use SPLOST proceeds for operating expenses or maintenance of a SPLOST project1 or any other county or municipal facility or service. SPLOST is levied in what the law refers to as a “special district,” which is comprised of the entire territory of the county calling for the SPLOST. By using special districts, the revenue of a county tax
can be constitutionally shared with participating municipalities. The tax is imposed when the board of commissioners – or in the case of Towns County, the sole commissioner – calls a local referendum (i.e., vote)  and the referendum is subsequently passed by the voters within the county.