Georgia Governor Brian Kemp signed House Bill 451, which provides Georgia manufacturers with a temporary tax break to help ease the economic and logistical disruptions caused by the COVID-19 pandemic.
Pursuant to HB 451, manufacturers who apply for exemption from Georgia’s Level 1 Freeport under OCGA Section 48-5-48.2 (c) (1) for the property tax year 2021 can apply the amount of the exempted finished goods inventory based on the value of Qualified Finished Goods Inventory As of January 1, 2020 or January 1, 2021. As a result, Georgia manufacturers who were forced to hold finished goods inventory for more than one (1) year may receive an exemption from unintended property tax liability in the year 2021.
Property tax returns, including Form PT-50PF (Free Port Exemption Application) for the property tax year 2021, were generally due by April 1, 2021 prior to the effective date of HB 451. Accordingly, Georgian manufacturers should evaluate possible methods of obtaining the relief under the law for the 2021 tax year.