Taxes

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Taxes

Paulding County’s sales tax is seven percent, collected on all retail sales except food items. The sales tax includes a four percent statewide sales tax and three percent in Special Purpose Local Option Sales Tax (SPLOST) to fund capital improvements and education (1% goes directly to education). Ad valorem property taxes apply to all land, buildings, equipment and inventory. Paulding County offers 100 percent Freeport exemption.

Freeport Exemptions
Paulding County has 100% Freeport exemption. Industries will not be charged inventory tax on raw materials and goods in process, finished goods held by the original manufacturer and finished goods held by distributors, wholesalers, and manufacturers destined for out-of-state shipment. Industrial Revenue bonds are available through the Industrial Building Authority on a case-by-case basis and may provide substantial savings to potential companies. Please contact the Industrial Building Authority for more information.

Single Factor Apportionment
Georgia’s new formula for calculating corporate income tax significantly reduces the effective rate of taxation of Georgia-based manufacturing, sales, and service companies with substantial sales to customers outside Georgia.

Georgia’s six percent corporate income tax rate applies only to the portion of income that is earned in Georgia.

Since 2008, companies operating in Georgia use a "Single Factor Gross Receipts" apportionment formula. This formula substantially reduces Georgia income tax for companies that are based in the state but deliver a large portion of products or services to customers outside Georgia. Under the law, Gross Receipts, or sales in Georgia, are the only factor used to determine the amount of a company’s income that is subject to Georgia income tax.

Georgia is the first Southeastern state to adopt single-factor apportionment for state income taxes. In addition, Georgia’s broad definition of what sales qualify as out-of-state means that tax savings in Georgia will likely exceed those of future states to adopt single-factor apportionment.

INCENTIVES
Both Paulding County and the State of Georgia have incentives available for companies that meet specific criteria and who are considering establishing their business in Paulding County.

Tax Incentives
Tax incentives are available to companies on case-by-case basis through the Industrial Building Authority and are dependent on the economic impact of the project on the community, including the amount of the capital investment and the number of jobs created. Please contact the Industrial Building Authority for more information.

Job Tax Credit
Provides for a statewide job tax credit ranging from $750 to $3,500 per full-time job. The state has a 4-tier designation. Paulding County is a Tier 3 county.

The credit cannot be more than 50% of the taxpayer's state income tax liability for a taxable year in Tiers 3 and 4. A credit claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which the qualified jobs were established. A bonus credit of $1,250 is possible for companies with large shipments through Georgia's ports. The basis for determining a company's qualification is that a taxpayer must import or export quantities 10% above the base year (1997) or 10% above a minimum of 75 net tons, 5 containers, or 10 twenty-foot equivalent units if a taxpayer did not have any activity.

Child Care Tax Credit
The State of Georgia provides a corporate income tax credit for employers who directly provide or sponsor child care services for their employees. Companies may qualify for a tax credit up to 75% of the employer's direct cost or entire investment at 10% per year if a child care facility is constructed by the employer. The total credit claimed cannot be more than 50% of the company's total state income tax liability for that taxable year.

BEST Act
Under the Georgia Business Expansion Support Team (BEST) Act of 1994, qualified companies that locate or expand in Georgia may be eligible for incentives to reduce costs and improve a company's bottom line. Qualified companies in Paulding County can receive a $500 tax credit for every job created in Paulding County in excess of 25 jobs. Credits are also available for investment, retraining employees, and childcare expenses. Qualified companies may also receive exemptions for manufacturing machinery sales, primary material handling sales, and electricity sales.

Georgia Job Tax Credits Form

State and Local Tax Elimination / Reductions
Primary Material Handling Sales and Use Tax Exemption
Georgia offers an exemption from sales and use tax up to 100% for purchases of primary material handling equipment used directly for the storage, handling, and movement of tangible personal property in a new or expanding warehouse or distribution facility. This exemption applies to new or expanding facilities with an investment of $5 million or greater and with less than 15% of sales at retail.
Website: http://www.etax.dor.ga.gov

Employee Recruitment and Training
Georgia Department of Labor
Upon determination of the specific job skills needed by the client, applicant recruitment, screening to company-defined criteria, referral, and provision of office space for new employee interviews is administered by the Georgia Department of Labor and the local Georgia Department of Labor Career Center. The requirement to qualify is to hire at least one Georgia employee. This service is funded through the Federal Unemployment Tax Act (FUTA).
Website: www.dol.state.ga.us/cc_services.htm

GeorgiaHire
Additional recruitment services are available through Georgia Hire, a unique economic development tool offered by the University System of Georgia. Companies can use an easy 10-point search engine to search through 10,000 resumes of college-educated students and alumni who are actively looking for work. Employers can search by keywords, type of position and employer the student seeks, major, and graduation date. Students and alumni can post resumes (and Georgia companies can search them) free. Resumes are automatically deleted from GeorgiaHire.com after 180 days, in response to employer requests for a date-timer on each resume to ensure that all information is current. Companies can also post job listings for a small fee. All of Georgia's 34 public and 18 of the 25 private colleges and universities are part of GeorgiaHire.com.
Website: www.GeorgiaHire.com

Georgia Quick Start Training and Local Technical College(s)
Training and testing is provided through programs administered by the Georgia Department of Technical and Adult Education. Pre-employment training is available using industry-specific certificate programs offered locally through a network of 34 technical colleges and four university system affiliates. Presently, there are three unique certification programs that prepare Georgia's workforce in the areas of customer service, manufacturing, and construction related occupations. Post-employment training through the Quick Start program is customized to the specific needs of a company. This process involves conducting a training needs analysis of the jobs within the company, developing a detailed training plan, and finally, conducting the training.

Quick Start covers two comprehensive areas: manufacturing, distribution, and service/back office training. Manufacturing and distribution training is comprised of the following six segments: company orientation, core skills, job-specific skills, productivity enhancement, employee involvement, and human resource development. Service/back office training is also divided into six segments: company orientation, customer service, interaction skills, product information training, job procedures, and professional development. Quick Start is designed to be flexible and to respond immediately to each company's needs.

Training can take place at the company's facility or at a location arranged by Quick Start. The training schedules are also very flexible. Every company that takes part in Quick Start training works with a Certified Economic Developer Trainer (CEDT). The CEDT is located at one of the Georgia Department of Technical and Adult Education's 34 technical colleges or one of the four university programs affiliated with Quick Start. With a local CEDT, a company can count on personalized attention, local management and a single, accessible point of contact. Quick Start believes that training is an ongoing process. That's why the Department of Technical and Adult Education designed Quick Start around the 34 technical colleges and four university programs throughout the state, so their services are never far away when companies need them.
Website: www.dtae.org/econdev/econdev.html

The HOPE Scholarship
Georgia's Hope Scholarship is a unique program designed to reward motivated students with financial assistance in degree, diploma or certificate programs at any eligible Georgia public college or university. Financial assistance covers tuition, mandatory fees and a book allowance. To qualify, the student must be a Georgia resident and must have graduated from high school in 1993 or later with a B or 3.0 cumulative average. There are no family income restrictions. Students who graduate from high school with a B average after 1996 and wish to enroll in one of Georgia's private colleges or universities may be eligible for the Georgia Tuition Equalization Grant of $1,000 per year. These students may receive an additional $3,000 per year from the HOPE Scholarship program, for a total scholarship of $4,000 per year. Students may renew the HOPE Scholarship for their sophomore, junior, and senior years if they maintain a 3.0 or greater cumulative grade point average. Georgia residents who choose to attend one
of Georgia's public technical colleges to earn a certificate or diploma are eligible for HOPE Grant assistance regardless of high school graduation date or grade point average.
Website: www.dtae.org/hope.html#HOPEGRANT