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Georgia Clarifies New Sales Tax Exemption


 Georgia law clarifies Freeport Exemption for fertilizer production products.

Last month, Georgia House Bill 304 became law. The new law is a "Freeport Exemption;" a "governing authority of any county or municipality may elect, with the approval of the voters," to adopt a Freeport Exemption for specified types of tangible personal property.

A Freeport Exemption may be set at "20, 40, 60, 80, or 100 percent of the inventory value." According to the Georgia Department of Revenue, "[o]ver sixty percent of Georgia counties and cities have adopted the Freeport Exemption at some level."

The bill clarifies "the applicability of an exemption to fertilizer production processes…." HB 304 exempts from ad valorem taxation tangible personal property used in the following manufacturing, processing, or production operations:

  • "Cleaning, drying, pest control treatment, or segregation by grade of grain, peanuts or other oil seeds, or cotton;
  • The remanufacture of aircraft engines or aircraft engine parts or components…;
  • The blending of fertilizer bulk materials into a custom mixture…."

This law amends Code Section 48-5-48.2, and also repeals "conflicting laws." It takes effect January 1, 2014.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.