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Council approves freeport tax exemption
by Staff Reports
December 11, 2013 05:54 PM | 1875 views | 0 0 comments | 17 17 recommendations | email to a friend | print
The Atlanta City Council Dec. 2 passed an ordinance to increase the freeport exemption for manufacturers and distributors to 100 percent. The inventory tax exemption increase will remove the tax for certain classes of goods destined for shipment outside of the state, equaling exemptions in surrounding counties and cities. The move will help the city retain manufacturing jobs while building the tax base and attracting new investment.

Manufacturing firms generate nearly $6 billion in sales each year, accounting for more than 10 percent of all sales in Atlanta. They employ more than 35,000 people, representing more than 6 percent of the city’s workforce. The average wage for these middle-class jobs is more than $76,000 per year.

Georgia is one of only 14 states with an inventory tax. Previously, the city offered a 20 percent inventory tax exemption on raw material, work-in-process and finished goods inventory. The annual revenue from those taxes was about $2 million.

Since 2000, Atlanta has lost nearly 4,700 manufacturing industry jobs according to a study by the Georgia Institute of Technology. The ordinance will go into effect Jan. 1, 2015.

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