Corporate Net Income
Georgia’s corporate income tax rate is 6%. Georgia has not raised taxes in seventeen years. Legislated balanced budget. Applies only to the portion of income that is earned in Georgia. The following formula is used:
|Adjusted Taxable Income||Â XÂ||Property in Georgia||Â +Â||Payroll in Georgia||Â +Â||Sales in Georgia||Â XÂ||Â 6%Â|
|Total Property||Total Payroll||Total Sales|
Corporate Net Worth (Franchise Tax)
Domestic operations are taxed on 100% of net worth and foreign (out-of-state) corporations are taxed only on net worth apportioned to Georgia. The following formula is used:
|Net Worth in Georgia||=||Total Net Worth||X||Property and Sales in Georgia|
|Total Property and Sales|
Real & Personal Property (Ad Valorem Taxes)
|Effective property tax rates:Â||City – 29.18|
|County – 23.57|
These taxes are stated in terms of millage rates, the dollars of taxes to be paid for each $1,000 of the real property’s assessed valuation. The assessed valuation rate is 40% of the property’s fair market value. All rates are set at the local level, except the State portion of the tax, which is fixed by Georgia law and a rate of 0.25 mills. Tax Formula: Value x .40/1000 x millage = Tax (Current Tax Rate)
Intangible Property Tax
Georgia’s corporate income tax rate is 6%. Tax is collected annually by Georgia counties. Rates are fixed by state law and range from $0.10 to $1 for each $1,000 of fair market value.
|Category||Rate per $1,000 Fair Market Value|
|Share of Stocks & Bonds||$1.00|
Tax applies only to intangibles apportioned to Georgia (using the same 3-ration formula as for corporate income tax), and does not apply to stock held in corporations chartered outside Georgia but now located in the state.
Sales and Use Tax
A 4% state wide sales tax is paid by Georgia companies at the time of purchase. The state wide tax applies to purchases (other than real estate) delivered to or stored in Georgia to be used or consumed in the business (not for resale). Includes: Natural gas, oil, gasoline, telephone, artificial gas, steam, electricity and rentals. In order to reduce property taxes, the 4% statewide sales tax has been increased to 5% in over half of Georgia’s 159 counties. Some counties levy an additional 1% sales tax to reduce property tax levies.
- Purchase for resale
- Machinery used directly in making a product for sale
- Raw materials that will become a component of a finished product
- Machinery and equipment used for pollution control
- Solar energy systems machinery for heating/cooling/drying
Pulaski County: 4% State, 3% County
Special Local Option Sales Tax
An additional 1% special purpose sales tax is available to county governments. Pulaski County used a special local option sales tax to renovate the Courthouse and the Opera House. The tax can be levied by local counties to either supplement general revenues or to fund specific civic projects such as road construction.
Personal Income Tax
Rates range from 1% to 6% of taxable income. Income and deductions generally follow federal regulations.
Pulaski County has 100% free port tax. Freeport exemptions are figured on raw materials used in the production of finished goods and finished goods to be distributed outside the State of Georgia. Materials used in production and distributed are not taxed.
The County will consider property tax abatement on a case by case basis.