This month, Tony’s Tip addresses Freeport Exemptions in the State of Georgia – and how both levels can help you achieve tax savings.
November 13, 2018
FREEPORT EXEMPTIONS IN GEORGIA
Freeport exemptions are a type of personal property tax abatement for property located in Georgia. There are two distinct levels of exemption, based on the type or use of property that is a part of the exemption.
Level 1 Freeport
The governing authority of any county or municipality may elect, with the approval of the voters, to exempt specific types of tangible personal property.
The percentage of exemption can be set at 20, 40, 60, 80 or 100 percent of the inventory’s value. Over 60% of Georgia counties and cities have adopted a Freeport Exemption at some level.
Application for Freeport Exemption should be made with the Board of Tax Assessor’s within the same time period that returns are due in the county. Applications filed after that time can receive a partial exemption for that year up to June 1.
Level 2 Freeport
The governing authority of any county or municipality may elect, with the approval of the voters, to exempt goods, wares, and merchandise of every character and kind constituting a business’s inventory which would not otherwise qualify for a Level 1 Freeport Exemption.
The percentage of exemption can be set at 20, 40, 60, 80 or 100 percent of the inventory’s value.
Application for Freeport Exemption should be made with the Board of Tax Assessor’s within the same time period that returns are due in the county. Applications filed after that time can receive a partial exemption for that year up to June 1.
