SPECIAL TAX SCHEDULE
Macon and Bibb County may develop a Special Tax Schedule for new Real and Personal property for qualifying projects. Qualifying projects must satisfy certain financial requirements as well as new jobs and payroll levels and new capital investment requirements. The Special Tax Schedule, sometimes referred to as a PILOT (payment in lieu of taxes) is developed by the Macon-Bibb County Tax Assessors office and approved by the Macon Bibb County Industrial Authority.
The Special Tax Schedule provides a substantial discount on the company’s new Real and Personal property taxes introduced in the community. The schedule could reduce the company’s local property tax liability by up to 50% over the life of the asset. The schedule is structured to allow the greatest benefit in the early years of the project. All Special Property Tax Schedules must be used in conjunction with Industrial Revenue Bonds to transfer title on the abated property to the Macon-Bibb County Industrial Authority.
100% FREEPORT EXEMPTION
Macon and Bibb County offer 100% Freeport Exemption from local property taxes on all three classes of merchandise:
1. Manufacturer's raw materials and goods-in-process. The freeport law defines these as "goods in the process of manufacture or production which shall include all partly finished goods and raw materials held for direct use or consumption in the ordinary course of the taxpayer's manufacturing or production business...." The exemption applies "only to tangible personal property which is substantially modified, altered or changed in the ordinary course of the taxpayer's manufacturing, processing or production operations in this state."
2. Finished goods held by the original manufacturer. These are defined in the law as finished goods manufactured or produced within Georgia "in the ordinary course of the taxpayer's manufacturing or production business when held by the original manufacturer or producer.... The exemption...shall be for a period not exceeding 12 months from the date such property is produced or manufactured."
3. Finished goods held by distributors, wholesalers, and manufacturers destined for out-of-state shipment. The law states that such goods are those "...which, on January 1, are stored in a warehouse, dock or wharf, whether public or private, and which are destined for shipment to a final destination outside this state and inventory of finished goods which are shipped into this state...and stored for transshipment to a final destination outside this state."Companies file for the exemption annually with the local Macon-Bibb County Tax Assessor.
DEVELOPED INDUSTRIAL SITES
The Macon-Bibb County Industrial Authority owns or manages over 1,200 acres of zoned property in eight Business and Industrial Parks in the city/county. All sites have infrastructure in place and are zoned for industrial use. The Authority makes these sites available at affordable prices to new and existing business and industrial prospects. The Authority will consider the financial strength of the company as well as the new jobs and payroll, and new capital investment.
Based on the financial strength of the company as well as the new jobs and payroll, and new capital investment made, the city / county may offer assistance in developing the site, i.e., grading, roads, infrastructure improvements, etc., at a reduced cost.
Macon Bibb County Industrial Authority has issued close to $1 billion in Industrial Revenue Bonds (IRB) in the past. The Authority has the expertise to structure IRB financings to meet the requirements of the prospect. IRB financing can include tax exempt (qualifying manufacturing operations) or taxable. IRB financing can provide substantial savings for projects that qualify.
In addition to Industrial Revenue Bond Financing, the community may offer financing from various sources including, local bank financing at favorable terms, and financing from programs administered by the Middle Georgia Regional Center such as Revolving Loan Fund, SBA programs, 504 and 7a, and other sources.