Georgia GEORGIA BUREAU OF INDUSTRY AND TRADE RESEARCH DIVISION P. 0. BOX 38097, ATLANTA, GEORGIA 30334 '\ I I ~'gilf'~o"lt,~o (>\1>,_1o~,EPDEAV~il/r''~ C!lu ~~ ~"1\ %c., $'~ J'.l"fil}"...._ TRADE-"0'0 GEORGIA DEPARTMENT OF COMMUNITY DEVELOPMENT LOUIS W. TRUMAN LT. GENERAL. U.S. ARMY (RET.) COMMISSIONER Georgia: Principal Industrial Taxes, was prepared by the Georgia Bureau of Industry and Trade for persons needing a quick reference to major state and local industrial taxes. Corporations contemplating the establishment of a facility in Georgia will find the presentation particularly helpful for estimating tax liability. The reader is cautioned that statutory authority for tax law interpretation rests with the Georgia Commissioner of Revenue, Nick P. Chilivis, and any estimate obtained through use of the forms and information herein is only an estimate and not an official determination of taxes due. This fact, however, does not diminish the value of this publication in guiding those who desire summary information about Georgia taxes. Persons desiring more complete information about Georgia taxes are invited to contact this Department or the Department of Revenue for assistance. c:it<:J~~-r(~.h/-vt_-~/r/n.d-v--- Lt. General, U. S. Army (Retired) Commissioner 601 TRINITY- WASHINGTON BUILDING ATLANTA, GEORGIA 3 0334 TELEPHONE, 404-656 - 3556 CONTENTS 2 Summary Property Tax 3 real and personal 5 effective rates 8 intangible 10 Corporate Income Tax 12 Sales Tax 13 Unemployment 14 Workmen's Compensation 9 Corporate Franchise Tax 15 Corporate Registration Fees Appendices 18 County-Town Index 16 Town-County Index 20 Tax Computation Form 21 Tax Checklist 19 Additional Sources of Tax Information May, 1975 Georgia Bureau of Industry and Trade Research Division P. 0. Box 38097, Atlanta, Georgia 30334 404 I 656-3584 SUMMARY OF PRINCIPAL INDUSTRIAL TAXES PROPERTY Each county, municipality, and school TAX district is empowered to tax real and tangible personal property. The State collects 10 for each $1,000 of fair market value. Page 3 INTANGIBLE Collected by the county. The rate varies PROPERTY TAX from $.10 per $1,000 of fair market value on cash, receivables, patents, etc. to $1.00 on certain stocks and bonds. The rate for long term mortgage notes secured by real estate is $3. 00. Page 8 CORPORATE Corporations deriving income from INCOME TAX business transacted in Georgia are subject to a 6% corporate income tax. The tax applies only to the portion of income earned in Georgia. Page 10 SALES AND The 3o/o tax applies to the retail purchase, USE TAX retail sale, rental, storage, use or consumption of tangible personal property delivered in Georgia. Taxable services include sales of natural gas, artificial gas, oil, steam, gasoline, electricity, and telephone. Page 12 UNEMPLOYMENT An industry with no previous employment INSURANCE record in Georgia would pay $113.40 for each employee earning $4,200 or over. After establishing an employment record, the rate can vary from $1.26 per employee to $189.00 per employee (based on each earning $4, ZOO or over), Rates are based primarily on employer's history of employee layoffs. Page 13 WORKMEN'S Georgia does not levy tax for workmen's COMPENSATION compensation, The Workmen's Compensation Act requires employers of three or more to carry insurance with private companies or be self insured. Page 14 CORPORATE Annual tax based on net worth. Foreign FRANCHISE TAX corporations pay only on their net worth apportioned to Georgia. The tax is taken from a table -- range is from $10 to a maximum of $5,000. CORPORATE All corporations transacting business in REGISTRATION Georgia must register with the Secretary FEES of State. After the initial registration fee of $15 ($100 for foreign corporations), corporations are required annually to file a report and pay a $5 filing fee. Page 9 Page 15 2 PROPERTY TAX (Real and Tangible Personal Property) The local property tax is the principal source of revenue for Georgia counties and municipalities. The State also levies a tax on property, but it is negligible -- only 10 for each $1,000 of fair market value. All industries pay property tax annually on real and tangible personal property (includes raw materials, work-in-process, and finished goods inventory). The owner of the property on January 1 is liable for the tax. Inventory and other property acquired after January 1 are not subject to the tax in that year. The tax rate is applied to the fair market value after this value has been adjusted downward by the city or county assessment ratio. All Georgia counties use a 40% assessment ratio. City assessment ratios vary from 40% to 100%. Fair market value is determined independently by each county. The conventional method of tax computation is illustrated in the following example: -Conventional Method- A plant location with total property having a fair market value of $25,000: [Fair market value] [Assessment ratio] [Tax rate] TAX DUE [$25,000] [40%] [$15 per 1,000] $150 -Short-cut Method- Since the order of multiplying the above three factors does not change the result, the 40% assessment ratio can be multiplied by the $15 tax rate, and the resulting factor -- $6 can then be multiplied by the fair market value: [$25,000] [$6 per $1,000] $150 The above $6 factor is referred to in this presentation as the "effective tax rate." Advantages of using an effective tax rate are: The tax for any location can be computed in one step (omitting step using assessment ratio in the conventional method). Any number of locations can be compared by using effective rates (not necessarily true using assessment ratios). For example, consider two locations. One has a tax rate of $30 and a 30% assessment ratio, and a second location has a tax rate of $90 with a 10% assessment ratio. The yields of these two tax rates are exactly the same, although it is not immediately obvious. The effective rates clearly illustrate that the two are identical: [Assessment ratio] [Tax rate] Effective tax rate [30%] [$30] $9 [10%] [$90] $9 Another advantage of effective rates is that they can be added. If, in a given location, the effective rate is computed for each of the four taxing jurisdictions in Georgia (city, county, county school system, and state), the resulting four rates can be added, thus giving one effective tax rate for that location as illustrated in the following example of a hypothetical city: 3 Jurisdiction City County County Schools State Tax Rate Per $1,000 [ 9.20] [12.00] [16.00] [ . 25] Assessment Ratio [90%] [40%] [40%] [40%] Totals Effective Tax Rate In Outside City City (within county) $ 8.28 4.80 6.40 .10 $19.58 No tax $ 4.80 6.40 .10 $11.30 Referring again to the $25,000 example, the tax in the city would be computed in "one step" by multiplying the fair market value of the property by the total effective tax rate (per $1,000 of fair market value): [$25,000] [$19.58] $489.50 If the property were located outside the city (within the unincorporated area of the county), the property owner would not pay the city tax. The $11.30 rate would be applicable. [ $25 [$11.30] $282.50 The total effective tax rate has been computed for each city and for each county by the above described method of adding the effective tax rates for the four taxing jurisdictions. These rates are presented on the following three pages. A cross reference between the cities and counties is presented in the Appendix (page 16). Effective tax rates should only be used as a guideline in a location decision. Other considerations are: Services provided a location with a lower tax rate might not provide the same services to industry as a location with a higher rate. Local differences in determining fair market value of property. Pollution Control Incentives Facilities installed or constructed for the primary purpose of eliminating or reducing air or water pollution are exempt from property tax. Such facilities must be certified by the Georgia Water Quality Control Board and/or the Department of Humqn Resources. 4 COUNTY EFFECTIVE PROPERTY TAX RATES (per $1,000 of fair market value) The following 1974 rates include county, school, and state tax. All rates have been adjusted by assessment ratios. See page three for detailed explanation. Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hill Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham1 Chattahoochee Chattooga Cherokee Clarke* Clay Clayton2 Clinch Cobb Coffee Colquitt Columbia Cook Coweta Crawford Crisp $ 6.40 8.38 9.60 5.60 13.50 5.72 8.864 8.42 9.116 7.12 13.90 8.24 10.388 8.86 7.50 7.944 6.60 12.70 9.22 11.60 5.16 12.50 11.564 12.10 14.924 10.70 12.30 9.50 12.67 7.10 13.26 6.80 14.50 7.96 11.88 9.80 10.80 8.312 11.10 7.10 Dade Dawson Decatur DeKalb3 Dodge Dooly Dougherty Douglas* Early Echols Effingham Elbert Emanuel Evans Fannin Fayette4 Floyd5 Forsyth Franklin Fulton6 Gilmer Glascock Glynn7 Gordon Grady Greene Gwinnett8 Habersham Hall9 Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson 10 Jasper Jeff Davis $ 11.50 7.96 8.20 15.66 10.50 7.22 11.184 9.80 7.20 8.268 12.40 12.30 6.80 10.20 13.26 9.62 12.50 9.584 9.692 13.86 7.70 8.264 13.40 10.484 8.408 7.196 10.98 13.30 11.20 11.388 11.90 10.50 10.38 6.50 8.90 11.788 9.86 8.52 6.56 8.953 Jefferson Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion McDuffie Mcintosh Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee** Newton* Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski11 Putnam Quitman Rabun Randolph $ 7.30 12.00 8.30 9.10 9.20 9.58 9.70 9.50 10.40 7.42 10.40 9.38 9.172 10.82 9.52 10.60 8.54 11.80 7.34 7.60 7.36 11.20 6.20 4.90 11.86 12.70 8.40 6.236 11.20 11.30 12.70 8.50 9.752 10.188 9.54 7.676 9.60 10.66 5.97 Richmond Rockdale Schley Screven Seminole Spalding12 Stephens Stewart Sumter Talbot Taliaferro Tattnall Taylor Telfair Terrell Thomas13 Tift Toombs Towns Treutlen Troup Turner Twiggs Union Upson Walker Walton Ware* Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth $ 14.52 13.60 5.664 8.00 8.90 11.85 2 12.30 8.70 5.40 5.84 5.94 10.20 9.40 9.00 7.108 9.30 9.32 9.90 8.60 9.22 8.432 8.40 8.02 4.98 11.40 11.30 8.312 11.90 10.30 9.316 10.00 8.224 6.10 7.50 11.90 7.60 6.70 8.00 7.04 Footnotes 1- 13 apply to certain unincorporated county areas: 1chatham-Excludes $1.66 special service district tax. 2clayton-Excludes $1.52 for fire district No.1. 3DeKalb-Excludes $1.02 for DeKalb fire district. 4Fayette-Excludes $.80 for fire district. 5Floyd-Excludes $.90 for fire district No. 2. 6Fulton-Excludes $1.08 for Sandy Springs fire district and S\1.40 for Fulton Industrial fire district. 7Glynn-Excludes special improvement tax of $1.10 for St. Simons and Sea Island, $.70 for Glynn improvement district No.1 and $.40 for improvement district No.2. 8Gwinnett-Excludes $1.10 for fire district A and $.38 for recreational district No. 1. 9Hall-Excludes $1.56 for Hall fire prevention district. 1OJackson-Excludes $.50 for fire district. llPulaski-Excludes $.40 for fire district. 12spalding-Excludes $.37 for fire district. 13Thomas-Excludes $1.80 for fire district No. 1 and $.90 for fire district.No.2. *197 3 rates-1974 rates not set at publication date. **Muscogee-Columbus consolidated government has five tax districts. Respective rates are No. 1 ($18.02), No.2 ($17 .23), No. 3 ($15.02), No. 4 ($13.06), Bibb City ($13.40). 5 CITY EFFECTIVE PROPERTY TAX RATES (per $1,000 of fair market value) The following 1974 rates include city, county, school, and state tax. All rates have been adjusted for assessment ratios. See page three for detailed explanation. Abbeville $ 12.80 Acworth 18.10 Adairsville 14.42 A del 14.20 Adrian* (Emanuel) 9.80 (Johnson) 11.30 Ailey 8.20 Alamo 12.10 Alapaha 11.52 Albany 16.01 Alma 15.60 Alpharetta 19.06 Alto* (Banks) 8.52 (Habersham) 16.10 Ambrose 12.76 Americus 8.70 Arabi 8.30 Aragon 12.188 Arlington* (Calhoun) 14.02 (Early) 12.00 Ashburn 11.80 Athens 16.19 Atlanta* (DeKalb) 21.97 (Fulton) 22.40 Attapulgus 12.20 Auburn 14.582 Augusta 22.72 Austell* (Cobb) 17.42 (Douglas) 12.72 Avalon 14.30 Avera 9.30 Avondale Estates 19.90 Baconton 10.96 Bainbridge 14.00 Baldwin* (Banks) 8.92 (Habersham) 16.50 Ball Ground 13.50 Barnesville 11.80 Bartow 10.701 Barwick* (Brooks) 12.86 (Thomas) 13.30 Baxley 12.40 Bellville 11.80 Berlin 13.88 Berkley Lake 12.18 Bibb City 22.68 Bishop 10.00 Blairsville 6.98 Blackshear 12.90 Blakely 9.60 Blue Ridge 18.54 Bogart* (Clarke) 15.671 (Oeonee) 11.40 Boston 13.30 Bowdon 18.50 * City is within two counties. ** City has five district tax rates. Bowersville Bowman Braselton Bremen* (Haralson) (Carroll) Bronwood Brooklet Brooks Broxton Brunswick Buchanan Buckhead Buena Vista Buford Butler Byromville Byron Cadwell Cairo Calhoun Camak Camilla Canon* (Franklin) (Hart) Canton Carl Carlton Carnesville Carrollton Cartersville Cave Spring Cecil Cedartown Centerville Chamblee Chatsworth Chauncey Chester Chickamauga Clarkesville Clarkston Claxton Clayton Clermont Cleveland Climax Cochran Colbert Coleman College Park* (Clayton) (Fulton) Collins Colquitt Columbus** (No. 1) (No.2) (No. 3) (No.4) (Bibb City) Comer $ 13.38 17.10 10.52 19.60 18.60 9.108 11.14 10.60 11.16 19.80 19.90 6.90 22.60 12.38 13.20 11.40 15.30 12.90 12.48 11.72 13.10 9.96 11.69 12.38 11.90 9.66 12.32 12.09 16.00 10.04 15.70 12.00 16.19 15.79 17.66 15.69 12.50 13.50 15.00 21.30 17.56 13.40 15.86 12.803 10.75 12.20 11.24 13.124 8.77 16.46 17.06 14.20 10.00 18.02 17.23 15.02 13.06 13.40 11.12 6 Commerce $ 11.84 Concord 13.75 Conyers 19.60 Coolidge 14.10 Cordele 11.50 Cornelia 16.90 Covington 16.45 C r a w f o r d ville 10.74 Culloden 12.40 Cumming 11.98 Cussefa 14.70 Cuthbert 9.57 Dacula 14.34 Dahlonega 14.77 Dallas 14.80 Dalton 15.10 Damascus 11.20 Danielsville 12.72 Danville* (Twiggs) 9.18 (Wilkinson) 9.20 Darien 15.80 Davisboro 14.12 Dawson 10.31 Dawsonville 9.561 Dearing 14.54 Decatur 23.33 Demorest 17.30 Dexter 14.70 Doerun 13.88 Donalsonville 15.55 Doraville 16.91 Douglas 12.36 Douglasville 12.80 Dubline 12.64 Dudley 14.50 Duluth 14.98 East Dublin 12.10 East Ellijay 11.70 Eastman 13.30 East Point 17.86 Eatonton 12.48 Edison 14.20 Elberton 16.30 Ellaville 7.26 Ellenton 13.88 Ellijay 12.50 Emerson 10.60 Enigma 9.92 Eton 13.06 Fairburn 16.66 Fairmont 14.88 Fayetteville 13.00 Fitzgerald 14.38 Flovilla 14.70 Flowery Branch 14.40 Folkston 16.10 Forest Park 18.46 Forsyth 14.80 Fort Gaines 13.10 Fort Oglethorpe* (Catoosa) 16.56 (Walker) 13.30 Fort Valley $ 16.90 Franklin 13.50 Franklin Springs 11.29 Gainesville 15.50 Garfield 8.80 Gay 8.34 Geneva 6.84 Georgetown 11.60 Gibson 14.26 Gillsville* (Banks) 6.92 (Hall) 12.40 Glennville 13.20 Glenwood 8.10 Gordon 12.00 Grantville 14.31 Gray 13.90 Grayson 12.58 Greensboro 10.20 Greenville 12.14 Griffin 15.85 Grovetown 15.80 Guyton 14.80 Hagan 12.20J Hahira 14.38 Hamilton 15.70 Hampton 11.50 Hapeville 18.66 Harlem 14.80 Harrison 11.72 Hartwell 15.18 Hawkinsville 12.34 Hazlehurst 12.95 Helen 8.51 Helena 13.00 Hepzibah 16.523 Hiawassee 9.80 Hinesville 14.40 Hiram 14.00 Hoboken 11.988 Hogansville 10.23 Holly Springs 11.90 Homeland 12.50 Homerville 10.80 Hoschton 10.52 Ideal 17.80 I!a 12.32 Iron City 10.90 Irwinton 9.60 Ivey 10.00 Jackson 16.70 Jasper 18.70 Jefferson 9.44 Jeffersonville 10.18 Jenkinsburg 15.50 Jesup 15.40 Jonesboro 15.26 Junction City 7.042 Kennesaw 18.50 Kingsland 17.50 Kingston 10.60 Kite 12.30 LaFayette 16.10 CITY EFFECTIVE PROPERTY TAX RATES (per $1,000 of fair market value) The following 1974 rates include city, county, school, ari.d state tax. All rates have been adjusted for assessment ratios. See page three for detailed explanation. LaGrange $ 8.63 Lakeland 13.58 Lake City 15.26 Lake Park 11.78 Lavonia 15.69 Lawrenceville 14.58 Leary 13.40 Leesburg 14.70 Lenox 14.80 Leslie 7.80 Lexington 8.236 Lilburn 12.78 Lilly 11.22 Lincolnton 13.02 Lithonia 18.66 Locust Grove 10.90 Loganville* (Gwinnett) 14.98 (Walton) 12.31 Lookout Mountain 15.30 Louisville 13.30 Ludowici 14.40 Lu1a* (Banks) 7.324 (Hall) 12.80 Lumber City 12.20 Lumpkin 12.30 Luthersville 10.14 Lyerly 16.30 Lyons 16.40 Macon* (Bibb) 21.10 (Jones) 16.30 Madison 12.10 Manassas 13.00 Manchester* (Meriwether) 13.74 (Talbot) 12.24 Mansfield 15.80 Marietta 13.64 Mar shallville 18.20 Martin 13.50 Maysville* (Banks) 7.72 (Jackson) 10.5 24 McCaysville 17.50 McDonough 11.86 McRae 12.30 Meansville 11.752 Meigs* (Mitchell) 11.36 (Thomas) 13.30 Menlo 14.80 Metter 7.48 Midville 14.60 Milledgeville 18.70 Milan* (Dodge) 14.50 (Telfair) 13.00 Millen 17.60 Milner 12.40 Mineral Bluff 15.26 Mitchell 11.064 * City is within two counties. Molena Monroe Montezuma Monticello Montrose Moreland Morgan Morganton Morrow Morven Moultrie Mount Airy Mount Vernon Mountain Park Nahunta Nashville Nelson* (Cherokee) (Pickens) Newborn Newington Newnan Newton Nicholls Norcross Norman Park Norwood Oakwood Ochlocknee Ocilla Oconee Odum Oglethorpe Oliver Omega Oxford Palmetto* (Coweta) (Fulton) Parrott Patterson Pavo* (Brooks) (Thomas) Pearson Pelham Pembroke Perry Pinehurst Pine Lake Pine Mountain Pineview Pitts Plains Plainville Pooler Portal Porterdale Port Wentworth Poulan Powder Springs Preston Quitman $ 11.752 14.312 17.00 10.16 13.70 9.112 11.80 14.26 15.26 12.46 15.88 14.10 7.80 23.86 13.588 11.52 12.70 15.90 14.30 10.00 12.71 9.60 11.16 10.72 15.888 12.30 15.20 14.10 15.06 11.32 12.80 15.00 10.40 14.12 16.45 12.31 17.86 10.31 10.30 14.46 14.90 12.38 11.70 11.90 16.99 11.40 21.66 16.10 8.80 11.60 9.40 12.48 18.92 9.54 18.30 19.92 16.52 19.30 11.823 10.86 Ray City Rebecca Reidsville Rentz Reynolds Rhine Richland Richmond Hill Rincon Ringgold Riverdale Roberta Rochelle Rockmart Rocky Ford Rome Roopville Rossville Roswell Royston* (Hart) (Franklin) Rutledge St. Marys Sale City Sandersville Sardis Sasser Savannah Savannah Beach Scotland Screven Senoia Sharon Shellman Shiloh Smithville Smyrna Snellville So cia! Circle Soperton Sparks Sparta Springfield Stapleton Statesboro Statham Stillmore Stockbridge Stone Mountain Sugar Hill Summertown Summerville Sumner Suwanee Swainsboro Sycamore Sylvania Sylvester Talbotton Talking Rock Tallapoosa Tallulah Falls* $ 11.12 12.40 13.40 11.70 13.40 14.50 13.50 9.50 14.40 17.56 17.26 14.70 12.40 14.19 10.00 17.10 r4.50 15.30 18.26 15.78 15.09 10.90 17.20 11.36 11.92 10.60 9.51 26.12 26.12 10.20 12.00 18.31 7.54 9.97 12.50 13.50 19.50 14.58 11.88 13.402 14.80 17.39 14.80 11.30 11.84 12.86 8.80 12.10 19.26 14.583 9.20 17.90 9.04 12.58 14.80 12.40 9.60 9.44 8.64 14.70 16.90 7 (Habersham) $ 14.50 (Rabun) 11.86 Temple 18.50 Tennille 14.12 Thomaston 17.80 Thomasville 15.60 Thomson 14.74 Thunderbolt 16.92 Tifton 15.32 Tignall 8.70 Toccoa 18.30 Toomsboro 9.60 Trenton 13.50 Trion 12.70 Twin City 12.80 Tyrone 11.00 Ty Ty 10.924 Unadilla 11.80 Union City 18.66 Union Point 11.20 Uvalda 8.60 Valdosta 14.34 Vidalia* (Montgomery) 14.00 (Toombs) 17.70 Vienna 11.88 Villa Rica* (Carroll) 17.70 (Douglas) 15.00 Waco 15.90 Wadley 12.10 Waleska 11.10 Warm Springs 10.94 Warner Robins 18.99 Warrenton 16.30 Warwick 11.04 Washington 12.40 Watkinsville 10.801 Waverly Hall 12.90 Waycross 17.50 Waynesboro 13.00 West Point* (Harris) 15.70 (Troup) 13.92 Whigham 12.48 White 10.60 Whitesburg 16.50 Willacoochee 12.384 Williamson 10.95 Winder 11.263 Winterville 15.07 Woodbine 17.00 Woodbury 12.14 Woodland 9.04 Woodstock 12.30 Wrens 12.90 Wrightsville 12.30 Yatesville 13.40 Young Harris 10.20 Zebulon 11.35 PROPERTY TAX (Intangible Property) Intangible property tax is based on the fair market value as of January 1, Property acquired after January 1 is not subject to the tax in that year. The tax rate varies from 10 to $1.00 per $1,000 of fair market value. Rates vary according to these seven basic classes of intangibles: Shares of stock------------------------------- $1.00 Money on hand and on deposit ------------------ .10 Notes and accounts receivable ---------------- .10 Short term mortgage notes secured by real estate ---------------------------------- .10 Collateral security loans -------------------- .25 Patents, copyrights and miscellaneous items -- .10 Bonds ---------------------------------------- 1.00 Examples of tax-exempt intangible property: Stocks of Georgia corporations Bank stock Bonds of the State of Georgia and its subdivisions Intangible property belonging to the Federal Government or the State of Georgia Money belonging to persons residing outside Georgia The common voting stock of a subsidiary corporation not doing business in Georgia 8 CORPORATE FRANCHISE TAX Corporations derivipg income from business transacted in Georgia or from property located in Georgia pay an annual tax based on net worth. Georgia law refers to this tax as a license and occupation tax. Domestic corporations pay the tax based on 100% of net worth. Foreign corporations pay on the portion of net worth employed in Georgia which is determined by the formula: ~ Totall ~et Wor~ ~ropertyl/ and Sales in Georgi~ l_ Total Property and Sales ~ The tax is taken from the following table: NET WORTH (over) (but does not exceed) TAX DUE $ 0 $ 10,000 $ 10 10,000 -------------- 25,000 ------------ 20 25,000 40,000 40 40,000 -------------- 60,000 -------------- 60 60,000 80,000 75 80,000 -------------- 100,000 -------------- 100 !00,000 !50, 000 !25 150,000 -------------- 200,000 -------------- 150 200,000 300,000 200 300,000 -------------- 500,000 -------------- 250 500,000 750,000 300 750,000 -------------- 1,000,000 -------------- 500 1,000,000 2,000,000 750 2,000,000 -------------- 4,000, 000 -------------- 1,000 4,000,000 6,000,000 1,250 6,000,000 -------------- 8,000,000 -------------- 1' 500 8,000,000 10,000,000 1' 750 10,000,000 -------------- 12,000,000 -------------- 2,000 12,000,000 14,000,000 2, 500 14,000,000 -------------- !6,000,000 -------------- 3,000 !6,000,000 18,000,000 3, 500 18,000,000 -------------- 20,000,000 -------------- 4,000 20,000,000 22,000,000 4, 500 22,000,000 ---------------------------------------- 5,000 l/Definitions of property and sales are on page eleven. 9 GEORGIA CORPORATE INCOME TAX Georgia's 6% corporate income tax applies to income from business transacted in Georgia, or from property located in Georgia. The tax applies only to income earned in Georgia. This is determined (see formula below) by multiplying the adjusted net income (A) by the average of three ratios (B): property, payroll, and sales. Corporate Tax Formula (A) r l Adjusted let Incom.J ~operty in Georgia CTAL PROPERTY (B) + payroll in Georgia +sa-les in Georg~a TOTAL PAYROLL TOTAL SALES 3 H.(C) TAX DUE The following example is an application of the tax formula using hypothetical figures. The factor "B" is not detailed but represents the average of three fractions, which equals 1/20 or 5%: -Example- Net Income-Federal Return additions (as defined by Ga. law) deductions (as defined by Ga. law) $1,000,000 23, 800 (47, 800) Adjusted Net Income 976,000 (A) Average of property, payroll and sales ratios _ __,.c...::O:..::S (B) Income "earned in Georgia" 48,800 (tax rate) _ _--.:::_6% (c) TAX DUE - - - - - - - - - - - - - - - - - - - - - $ ~ 10 DEFINITIONS (Apply to corporate income tax and corporate franchise tax) ADJUSTED NET INCOME - The adjusted net income ("A" in the formula) is the net income as reported on the Federal return, with certain additions and deductions prescribed by Georgia law, such as adjustments for income tax deductions, adjustments for gains and losses, and exclusion of non-business income (nonbusiness income less expenses connected therewith is allocated to the corporation's home state). The remaining business income is subject to apportionment by the three factors outlined below: PROPERTY - The average value of real and tangible personal property, owned or rented, and used during the tax period. Property owned is valued at original cost. Rented property is valued at eight times the net annual rental rate (excludes sub-rentals). Rental property is excluded in computing the Franchise Tax. PAYROLL - Salaries, wages, commissions, and other compensation incurred for services performed in connection with the business during the taxable year. SALES - Gross receipts from business. Receipts from products shipped (or delivered) to Georgia customers are included in Georgia sales. Receipts from sales negotiated or effected through offices of the taxpayer outside the State and delivered from storage in Georgia to customers outside Georgia shall be excluded from Georgia sales. POLLUTION CONTROL INCENTIVES The (Federal) Tax Reform Act of 1969 allows accelerated depreciation of certified pollution control facilities. Georgia corporate income tax would reflect this savings since the Federal tax is the base for computing the state tax. 11 SALES AND USE TAX The 3/~/ tax applies to the retail purchase, retail sale, rental, storage, use or consumption of tangible personal property and services described in the Act, the delivery of which takes place in this State. Upon the first instance of use, consumption, distribution, or storage within Georgia of tangible personal property purchased at retail outside this State, the owner or user thereof shall be liable for a tax at the rate of 3% of the cost price or fair market value thereof, whichever is the lesser, provided there shall be no duplication of the Georgia tax, and subject to credit for a like tax paid in a reciprocating state, not to exceed the rate imposed by Georgia law. Taxable services include sales of natural gas, artificial gas, oil, steam, gasoline, solid fuel, electricity and telephone. Exemptions include: Machinery used directly in the manufacture of tangible personal property when incorporated into a new manufacturing plant and additional machinery incorporated into a presently existing manufacturing plant in this State, provided such purchases are approved by the Commissioner of Revenue. Machinery and equipment for reducing air and water pollution, provided such purchases are approved by the Commissioner of Revenue. Industrial materials which become a component part of a finished product for sale or are coated with or impregnated into the product at any stage of its manufacture. Packaging materials which are not purchased for reuse. Sales in interstate commerce when delivered outside Georgia by common carrier, U. S. Post Office, the seller, or a trucker hired by the seller. l/4% in Atlanta area (Fulton and DeKalb County) 12 UNEMPLOYMENT INSURANCE Unemployment insurance was established in the National Social Security Act of 1935. Although created by Federal legislation, the insurance is administered by each state. Georgia law requires employers with one or more employees to pay the tax. An industry with no previous employment record in Georgia is taxed at 2.7% on the first $4,200 of each employee's earnings until an employment record is established -- approximately eighteen months. Each firm's employment record is determined primarily by its history of employee layoffs. On the basis of the employment record, the rate of taxation varies from 24/1000 of 1% to 4.5% of taxable wages.l/ The average tax rate for Georgia firms has declined steadily since inception of the program-- from 2.7% in 1938 to 1.0% in 1973. In 1974, forty-four percent of all covere~/ Georgia employers paid less than 1% on taxable wages. And fifteen percent paid the lowest standard rate for 1974, 8/100 of 1%. Detailed statistics on unemployment insurance can be found in the Georgia Department of Labor Annual Report, 1974. The report presents historical data for over three decades and is available from the Department of Labor. 1/Rates below 8/100 of 1% and above 4.2% are brought about only by a surplus or deficit in the State fund. 1/Excludes all employers with no employment record who are paying 2.7%. 13 WORKMEN'S COMPENSATION Georgia does not levy a tax for workmen's compensation. The work force is protected from job connected accidents by the Georgia Workmen's Compensation Law which requires employers of three or more either to carry insurancehl or be self-insured. Self-insured companies must provide proof of financial ability to the Workmen's Compensation Board. The Board may require posting of a bond. Private insurance companies rece~v~ng premiums from Georgia employers are assessed a percentage of the premium~/ by the Workmen's Compensation Board to provide for the administration of the Board. Self-insured companies are assessed the same percentage of the premiums they would have paid to private insurers: ~/Rates with private insurance companies generally range from 6 to $20.00 per $100 of payroll. 1/1.395% in 1974. 14 CORPORATE REGISTRATION FEES All corporations transacting business in Georgia must register with the Secretary of State. Initial Registration - Domestic corporations pay $15 (non-recurring) to file articles of incorporation with the Secretary of State. Foreign corporations pay $100 (non-recurring) for certificate of authority to transact business in Georgia. Annual Report Form F-38 - Both domestic and foreign corporations pay $5 annually to file annual report form F-38 (shown below) with the Secretary of State. Corporations are not required to file their financial statements. STATE OF GEORGIA CERTIFIED STATEMENT FOR ANNUAL REPORT OF A CORPORATION *GA. LAW 1968 REQUIRES EVERY CORPORATION TO STATE REGISTERED AGENT AND OFFICE NAME OF CORPORATION:: _______________________________________________________________________ PRINCIPAL OFFICER _ _ _ _ _ _ _ _ _ _ _ _ _ _ TITLE ADDRESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ PRINCIPAL OFFICER TITLE ADDRESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ PRINCIPAL OFFICER TITLE ADDRESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ PRINCIPAL OFFICER TITLE ADDRESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ *REGISTERED AGENT IN GA.:--------~---------- CITY _ _ _ _ _ _ _ _ _ _ _ _ STATE _ _ __ 'REGISTERED OFFICE IN GA.: (Street and No.) _ _ _ _ _ _' - - - - - - - - - - - - - - - - - CITY _ _ _ _ __ PRINCIPAL OFFICE IF FOREGIN: (St. and No.) CITY STATE WHEN INCORPORATED (Date) _ _ _ _ _ _ _ _ _ _ _ BEGAN OR WILL BEGIN BUSINESS IN GA. (Date)_ _ _ _ _ _ _ __ WHERE INCORPORATED (CITY) _ _ _ _ _ _ _ _ _ _ _ _ _ _ COUNTY _ _ _ _ _ _ _ _ _ _ _ STATE _ _ __ TO THE HON. BEN W. FORTSON, JR., SECRETARY OF STATE ATLANTA 3, GA. AUTHORIZED CAPITAL S T O C K - - - - - - - - CAPITAL STOCK ISSUED _ _ _ _ _ _ __ I hereby certify that the above statement furnished the Secretary of State of the State of Georgia for record, as required by law, is correct. Sign~d by CORPORATE OFFICER TITLE DATE , 19 PENALTY PROVISIONS ON REVERSE SIDE RECORDING FEE FIVE DOLLARS ANNUALLY 15 CITY Abbeville Acworth Adairsville Adel Adrian Ailey Alamo Alapaha Albany Alma Alpharetta Alto Ambrose Americus Andersonville Arabi Arlington Ashburn Athens Atlanta Attapulgus Auburn Augusta Austell Avalon Avera Avondale Estates Baconton Bainbridge Baldwin Ball Ground Barnesville Bartow Barwick Baxley Bellville Berlin Berkley Lake Bibb City Bishop Blairsville Blackshear Blakely Blue Ridge Bog~rt Boston Bowdon Bowersville Bowman Braselton Bremen Bronwood Brooklet Brooks Broxton Brunswick Buchanan Buckhead Buena Vista Buford Butler Byromville Byron Cadwell Cairo Calhoun Camak Camilla Canon Canton Carl Carlton COUNTY Wilcox Cobb Bartow Cook Emanuel Montgomery Wheeler Berrien Dougherty Bacon Fulton Banks Coffee Sumter Sumter Crisp Calhoun Turner Clarke Fulton Decatur Barrow Richmond Cobb Stephens Jefferson DeKalb Mitchell Decatur Banks Cherokee Lamar Jefferson Brooks Appling Evans Colquitt Gwinnett Muscogee Oconee Union Pierce Early Fannin Oconee Thomas Carroll Hart Elbert Jackson Haralson Terrell Bulloch Fayette Coffee Glynn Haralson Morgan Marion Gwinnett Taylor Dooly Peach Laurens Grady Gordon Warren Mitchell Franklin Cherokee Barrow Madison TOWN-COUNTY INDEX CITY Carnesville Carrollton Cartersville Cave Spring Cecil Cedartown Centerville Chamblee Chatsworth Chauncey Chester Chickamauga Clarkesville Clarkston Claxton Clayton Clermont Cleveland Climax Cochran Colbert Coleman College Park Collins Colquitt Columbus Comer Commerce Concord Conyers Coolidge Cordele Cornelia Covington Crawford Crawfordville Culloden Cumming Cusseta Cuthbert Dacula Dahlonega Dallas Dalton Damascus Danielsville Danville Darien Davisboro Dawson Dawsonville Dearing Decatur Demorest Doerun Donalsonville Doraville Douglas Douglasville Dublin Dudley Duluth East Dublin East Ellijay Eastman East Point Eatonton Edison Elberton Ellaville Ellenton Ellijay COUNTY Franklin Carroll Bartow Floyd Cook Polk Houston DeKalb Murray Dodge Dodge Walker Habersham DeKalb Evans Rabun Hall White Decatur Bleckley Madison Randolph Fulton Tattnall Miller Muscogee Madison Jackson Pike Rockdale Thomas Crisp Habersham Newton Oglethorpe Taliaferro Monroe Forsyth Chattahoochee Randolph Gwinnett Lumpkin Paulding Whitfield Early Madison Twiggs Mcintosh Washington Terrell Dawson McDuffie DeKalb Habersham Colquitt Seminole DeKalb Coffee Douglas Laurens Laurens Gwinnett Laurens Gilmer Dodge Fulton Putnam Calhoun Elbert Schley Clayton Gilmer 16 CITY Emerson Enigma Eton Fairburn Fairmont Fayetteville Fitzgerald Flovilla Flowery Branch Folkston Forest Park Forsyth Fort Gaines Fort Oglethorpe Fort Valley Franklin Franklin Springs Gainesville Garfield Gay Geneva Georgetown Gibson Gillsville Glennville Glenwood Gordon Grantville Gray Grayson Greensboro Greenville Griffin Grovetown Guyton Hagan Hahira Hamilton Hampton Hapeville Harlem Harrison Hartwell Hawkinsville Hazlehurst Helen Helena Hephzibah Hiawassee Hinesville Hiram Hoboken Hogansville Holly Springs Homeland Homerville Hoschton Hull Ideal lla Iron City Ivey Jackson Jakin Jasper Jefferson Jeffersonville Jenkinsburg Jesup Jonesboro Junction City Kennesaw COUNTY Bartow Berrien Murray Fulton Gordon Fayette Ben Hill Butts Hall Charlton Clayton Monroe Clay Catoosa Peach Heard Franklin Hall Emanuel Meriwether Talbot Quitman Glascock Hall Tattnall Wheeler Wilkinson Coweta Jones Gwinnett Greene Meriwether Spalding Columbia Effingham Evans Lowndes Harris Henry Fulton Columbia Washington Hart Pulaski Jeff Davis White Telfair Richmond Towns Liberty Paulding Brantley Troup Cherokee Charlton Clinch Jackson Madison Macon Madison Seminole Wilkinson Butts Early Pickens Jackson Twiggs Butts Wayne Clayton Talbot Cobb CITY Kingsland Kingston Kite LaFayette LaGrange Lakeland Lake City Lake Park Lavonia Lawrenceville Leary Leesburg Lenox Leslie Lexington Lilburn Lilly Lincolnton Linwood Lithonia Locust Grove Logansville Lookout Mountain Louisville Ludowici Lula Lumber City Lumpkin Luthersville Lyerly Lyons Macon Madison Manassas Manchester Mansfield_ Marietta Marshallville Martin Maysville McCaysville McDonough Mcintyre McRae Meansville Meigs Menlo Metter Midville Milledgeville Milan Millen Milner Mineral Bluff Mitchell Molena Monroe Montezuma Monticello Montrose Moreland Morgan Morganton Morrow Morven Moultrie Mount Airy Mount Vernon Mountain Park Nahunta Nashville Nelson Newborn Newington Newnan Newton Nicholls COUNTY Camden Bartow Johnson Walker Troup Lanier Clayton LOwndes Franklin Gwinnett Calhoun Lee Cook Sumter Oglethorpe Gwinnett Dooly Lincoln Walker DeKalb Henry Walton Walker Jefferson Long Hall Telfair Stewart Meriwether Chattooga Toombs Bibb Morgan Tattnall Meriwether Newton Cobb Macon Stephens Banks Fannin Henry Wilkinson Telfair Pike Thomas Chattooga Candler Burke Baldwin Telfair Jenkins Lamar Fannin Glascock Pike Walton Macon Jasper Laurens Coweta Calhoun Fannin Clayton Brooks Colquitt Habersham Montgomery Fulton Brantley Berrien Pickens Newton Screven Coweta Baker Coffee TOWN-COUNTY INDEX CITY COUNTY Norcross Norman Park Norwood Oakwood Ochlocknee Ocilla Oconee Odum Oglethorpe Oliver Omega Oxford Palmetto Parrott Patterson Pavo Pearson Pelham Pembroke Pendergrass Perry Pinehurst Pine Lake Pine Mountain Pineview Pitts Plains Plainville Pooler Portal Porterdale Port Wentworth Poulan Powder Springs Preston Quitman Ray City Rebecca Reidsville Reynolds Rhine Riceboro Richland Richmond Hill Rincon Ringgold Riverdale Roberta Rochelle Rockmart Rocky Ford Rome Roopville Rossville Roswell Royston Rutledge St. Marys Sale City Sandersville Sardis Sasser Savannah Savannah Beach Scotland Screven Senoia Shady Dale Sharon Sharpsburg Shellman Shiloh Smithville Smyrna Snellville Social Circle Soperton Gwinnett Colquitt Warren Hall Thomas Irwin Washington Wayne Macon Screven Tift Newton Fulton Terrell Pierce Thomas Atkinson Mitchell Bryan Jackson Houston Dooly DeKalb Harris Wilcox Wilcox Sumter Gordon Chatham Bulloch Newton Chatham Worth Cobb Webster Brooks Berrien Turner Tattnall Taylor Dodge Liberty Stewart Bryan Effingham Catoosa Clayton Crawford Wilcox Polk Screven Floyd Carroll Walker Fulton Franklin Morgan Camden Mitchell Washington Burke Terrell Chatham Chatham Telfair Wayne Coweta Jasper Taliaferro Coweta Randolph Harris Lee Cobb Gwinnett Walton Treutlen 17 CITY Sparks Sparta Springfield Stapleton Statesboro Statham Stillmore Stockbridge Stone Mountain Sugar Hill Summertown Summerville Sumner Suwanee Swainsboro Sycamore Sylvania Sylvester Talbotton Talking Rock Tallapoosa Tallulah Falls Tarryton Temple Tennille Thomaston Thomasville Thomson Thunderbolt Tifton Tignall Toccoa Toomsboro Trenton Trion Turin Twin City Tyrone TyTy Unadilla Union City Union Point Uvalda Valdosta Vidalia Vienna Villa Rica Waco Wadley Waleska Warm Springs Warner Robins Warrenton Warwick Washington Watkinsville Waverly Hall Waycross Waynesboro Weston West Point Whigham White White burg Willacoochee Williamson Winder Winterville Woodbine Woodbury Woodland Woodstock Wrens Wrightsville Yatesville Young Harris Zebulon COUNTY Cook Hancock Effingham Jefferson Bulloch Barrow Emanuel Henry DeKalb Gwinnett Emanuel Chattooga Worth Gwinnett Emanuel Turner Screven Worth Talbot Pickens Haralson Rabun Montgomery Carroll Washington Upson Thomas McDuffie Chatham Tift Wilkes Stephens Wilkinson Dade Chattooga Coweta Emanuel Fayette Tift Dooly Fulton Greene Montgomery Lowndes Toombs Dooly Carroll Haralson Jefferson Cherokee Meriwether Houston Warren Worth Wilkes Oconee Harris Ware Burke Webster Troup Grady Bartow Carroll Atkinson Pike Barrow Clarke Camden Meriwether Talbot Cherokee Jefferson Johnson Upson Towns Pike COUNTY-TOWN INDEX APPLING Baxley ATKINSON Pearson Willacoochee BACON Alma BAKER Newton BALDWIN Milledgeville BANKS Alto Baldwin Maysville BARROW Auburn Carl Statham Winder BARTOW Adairsville Cartersville Emerson Kingston White BEN HILL Fitzgerald BERRIEN Alapaha Enigma Nashville Ray City BIBB Macon BLECKLEY Cochran BRANTLEY Hoboken Nahunta BROOKS Barwick Morven Quitman BRYAN Pembroke Richmond Hill BULLOCH Brooklet Portal Statesboro BURKE Midville Sardis Waynesboro BUTTS Flovilla Jackson Jenkinsburg CALHOUN Arlington Edison Leary Morgan CAMDEN Kingsland St. Marys Woodbine CANDLER Metter CARROLL Bowdon Carrollton Roopville Temple Villa Rica Whitesburg COWETA Grantville Moreland Newnan Senoia Sharpsburg Turin CRAWFORD Roberta CATOOSA Fort Oglethorpe Ringgold CRISP Arabi Cordele CHARLTON Folkston Homeland CHATHAM Pooler Port Wentworth Savannah Savannah Beach Thunderbolt DADE Trenton DAWSON Dawsonville DECATUR Attapulgus Bainbridge Climax CHAIT AHOOCHEE Cusseta CHATTOOGA Lyerly Menlo Summerville Trion CHEROKEE Ballground Canton Holly Springs Waleska Woodstock DEKALB Avondale Estates Chamblee Clarkston Decatur Doraville Uthonia Pine Lake Stone Mountain DODGE Chauncey Chester Eastman Rhine FAYETTE Brooks Fayetteville Tyrone FLOYD Cave Spring Rome FORSYTH Cumming FRANKLIN Canon Carnesville Franklin Springs Lavonia Royston FULTON Alpharetta Atlanta College Park East Point Fairburn Hapeville Mountain Park Palmetto Roswell Union City GILMER East Ellijay Ellijay GLASCOCK Gibson Mitchell GLYNN Brunswick CLARKE Athens Wintt!rville CLAY Fort Gaines CLAYTON Ellenton Forest Park Jonesboro Lake City Morrow Riverdale CLINCH Homerville COBB Acworth Austell Kennesaw Marietta Powder Springs Smyrna DOOLY Byromville Lilly Pinehurst Unadilla Vienna DOUGHERTY Albany DOUGLAS Douglasville EARLY Blakely Damascus Jakin ECHOLS Statenville EFFINGHAM Guyton Rincon Springlleld GORDON Calhoun Fairmount Plainville GRADY Cairo Whigham GREENE Greensboro Union Point GWINNETT Berkley Lake Buford Dacula Duluth Grayson L