Georgia Governor Brian Kemp has signed into law House Bill 451, which provides temporary ad valorem tax relief to Georgia manufacturers to mitigate the economic and logistical disruptions caused by the COVID-19 pandemic.
Under HB 451, for property tax year 2021, manufacturers claiming Georgia’s Level 1 Freeport exemption pursuant to O.C.G.A. § 48-5-48.2(c)(1) may elect to claim the amount of finished goods inventory entitled to exemption based on the value of qualifying finished goods inventory as of either January 1, 2020 or January 1, 2021. As a result, Georgia manufacturers who have been forced to hold finished goods inventory for more than one (1) year may obtain relief from unintended property tax liabilities for tax year 2021.
Property tax returns, including Form PT-50PF (Application for Freeport Inventory Exemption) for property tax year 2021 were generally due by April 1, 2021, prior to the effective date of HB 451. Accordingly, Georgia manufacturers should evaluate potential methods to obtain the relief provided under the legislation for tax year 2021.
Read the full Legal Alert here.