Local incentive proposals are determined based on an evaluation of the economic impact of economic development projects and recommendations by the Greene County Development Authority, However, the following represents potential general local incentives for economic development projects. Other incentives may be available as determined on a case-by-case basis:
EXPEDITED PLAN REVIEW AND PERMITTING
Greene County, Greensboro and Union Point will commit to expediting all development and building permitting plan review for economic development projects upon recommendation of the Greene County Development Authority.
INVENTORY TAX EXEMPTIONS (FREEPORT)
In most states, business and industry are subject to ad valorem taxes on real property (land, building) and tangible personal property (inventory of raw materials, work in progress, and inventory of completed products). In Georgia, local communities have been granted the authority to provide a tangible personal property tax reduction or exemption if approved by the voters in a local referendum. There are three classes of goods that may be exempted from taxation. The classes to be exempted include the following:
Tangible personal property grown, harvested, manufactured processed or refined in Greene County and stored therein for shipment outside the state is exempted at the 100 percent level. Raw materials and partially finished goods not destined to be shipped outside the state are subject to tangible personal property taxation.
Inventory of finished goods manufactured or produced within the state of Georgia in the ordinary course of the taxpayer’s manufacturing or production business when held by the original manufacturer or producer of the finished goods for a period not to exceed 12 months is exempted from personal property taxation at the 100 percent level.
Tangible personal property transported into Greene County from outside the state in transit to a nal destination outside the state is exempted from personal property taxation at the 100 percent level. Tangible personal property that is not destined for out- of-state shipment is subject to ad valorem taxation.
For businesses seeking long-term, low-interest rate financing for the construction or improvements of manufacturing facilities, Industrial Revenue Bonds (IRB), also known as Industrial Development Bonds, or IDBs, are available through the Greene County Development Authority. IDB financing offers long- term, low-payment financing, with term matched to the useful life of the assets financed. We would be happy to discuss this option should there be interest.
PROPERTY TAX INCENTIVES
The ability to convey property tax incentives is limited in Georgia. In order to obtain ad valorem property tax savings for a company’s project or in order to obtain certain State grants of local incentives for the project, an industrial development bond (IDB) financed sale/leaseback is required. Such transactions are typically referred to as “bonds for title” transactions, and use of this technique involves the issuance of IDBs by a development authority to acquire or construct the project, with the title to the project vested in a development authority and with the company having the status of a lessee. The lease of the project to the company is typically at a rent equal to debt service on the bonds. Availability of property tax incentives is considered on a case-by-case basis.