ATLANTA – The Georgia House of Representatives today passed House Bill 1082 by a vote of 151-4. Sponsored by Representative Jay Powell (R-Camilla), HB 1082 is aimed at allowing local governments to expand Freeport ad valorem exemptions to all types of business inventory.
“During these tough economic times, it is important that we allow local governments to offer tax relief to businesses in their communities so they can better compete in the global marketplace,” said Representative Powell. “HB 1082 will help struggling businesses stay open and keep Georgians employed.”
The current Freeport exemption applies to all or any combination of the following: items produced in Georgia that are being held at in-state storage facilities, products produced in Georgia that remain on the manufacture site, and/or items produced outside of Georgia that are only temporarily held in Georgia before they are shipped to another location outside the state.
HB 1082 creates a second, or “Level 2” exemption, that applies to all other inventory of finished goods. The bill allows voters to decide through local referendum whether their county or city should exempt all inventory. Local governments can offer a full exemption or may choose to exempt 20, 40, 60, or 80 percent of the value of such tangible personal property. Communities that approve the exemptions must then immediately transmit a copy of the resolution to the state Department of Revenue commissioner.
HB 1082 will be sent to the Senate for consideration. A link to the bill can be found by clicking here.
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Representative Jay Powell represents the citizens of District 171, which includes portions of Colquitt and Mitchell Counties. He was elected into the House of Representatives in 2008, and currently serves on the Appropriations, Governmental Affairs, Judiciary and Ways and Means Committees.