Georgia

$20,000 De Minimis Business Personal Property Exemption

Effective January 1, 2025, all tangible personal property of a taxpayer, except motor vehicles, trailers, and mobile homes, is exempt from all ad valorem taxation if the actual fair market value of the total taxable tangible personal property the taxpayer owns in the county, as determined by the board of tax assessors, does not exceed $20,000. This threshold was increased from $7,500 by HB 808 (2024), approved by voters on November 5, 2024.

Sources: https://www.legis.ga.gov/legislation/65535. https://gov.georgia.gov/document/2024-signed-legislation/hb-808/download. https://www.legis.ga.gov/api/document/docs/default-source/house-budget-and-research-office-document-library/newsandhighlights/2024/2024_ballot_constitutional_amendments_and_referendums.pdf?sfvrsn=f896c284_2. https://results.sos.ga.gov/results/public/Georgia/elections/2024NovGen/ballot-items/01000000-d884-2e72-931e-08dcda4b86dd

Is business inventory taxed in Georgia?

Inventory is exempt from state ad valorem taxation per O.C.G.A. § 48-5-41.2. However, localities may still tax inventory unless the county or municipality has adopted a freeport exemption and you qualify. Over sixty percent of Georgia counties and cities have adopted freeport exemptions at some level.

What is the Georgia freeport exemption?

Georgia offers two levels of freeport exemption, both local option and requiring voter approval. Level 1 categories include: goods in process of manufacture and raw materials (no holding limit); Georgia-manufactured finished goods held by the original manufacturer up to 12 months from manufacture; finished goods stored on January 1 in a warehouse, dock or wharf and destined for shipment outside Georgia, up to 12 months from storage; fulfillment-center stock stored on January 1, up to 12 months. Level 2: inventory that does not qualify for Level 1. Counties and municipalities set the exemption at 20%, 40%, 60%, 80%, or 100% of inventory value. Application (PT-50PF) is required.

When is the Georgia property tax assessment date?

January 1. Property taxes are charged against the owner of the property on January 1 (O.C.G.A. § 48-5-9).

When are business personal property returns due in Georgia?

Returns are generally due between January 1 and April 1 per O.C.G.A. § 48-5-18, unless the county specifies another due date. The freeport exemption application must be filed within the same time period. Where the county's due date is April 1, Form PT-50PF provides reduced exemptions for late applications: 66.67% if filed April 2–30, 58.33% if filed May 1–31, 50% if filed June 1. Failure to file by June 1 waives the exemption for the year.

What is the $20,000 business personal property exemption in Georgia?

Effective January 1, 2025, all tangible personal property of a taxpayer, except motor vehicles, trailers, and mobile homes, is exempt from all ad valorem taxation if the actual fair market value of the total taxable tangible personal property the taxpayer owns in the county, as determined by the board of tax assessors, does not exceed $20,000. This threshold was increased from $7,500 by HB 808 (2024), approved by voters on November 5, 2024.