For all you small businesses an end of year gift awaits. You may never need to pay that inventory tax again.

On April 17, 2012 Governor Nathan Deal signed HB 48 Ad valorem tax; freeport exemptions; revise and change certain provisions into law. This law essentially repeals all laws that conflict with HB 48 governing state level inventory taxes and allows county commissioners to exempt all businesses from Freeport Level 2 ad valorem taxes.

This may be the most positive economic legislation to help a recovery in Georgia over the past four years. If this tax is relieved across the State of Georgia it will free up ten of millions of dollars for businesses to reinvest in capital, plant, and equipment to create jobs.

Section 3: 

251 48-5-48.6.

252 (a) This Code section shall be known and may be cited as the 'Level 2 Freeport

253 exemption.'

254 (b) As used in this Code section, the term 'finished goods' means, for purposes of a level 2

255 freeport exemption, goods, wares, and merchandise of every character and kind

256 constituting a business's inventory which would not otherwise qualify for a level 1 freeport

257 exemption.

258 (c) The governing authority of any county or municipality may, subject to the approval of

259 the electors of such political subdivision, exempt from ad valorem taxation, including all

260 such taxes levied for educational purposes and for state purposes, inventory of finished

261 goods. 

The method by which the Commissioners can exempt all businesses from Freeport Level 2 ad valorem taxes is through a referendum. From the Bill line 267; "The referendum ballot shall specify retail business inventory as the types of property as defined in this Code section which are being proposed to be exempted from taxation. The election superintendent shall issue the call and shall conduct the election on a date and in the manner authorized under Code Section 21-2-540."

Visit the Georgia General Assembly Web site for more information on HB 48.

I would suggest that you organize your community and press your Commissioners to put this on the ballot in your county for Nov 2012. This will get people out to the polls to end a tax on all their businesses.