Business Costs

PROPERTY TAX
Property taxes are levied as a millage rate. Each year, the City Assessor’s office estimates the value of all property in the city — both real and personal — as of December 31, otherwise known as “tax day.” The valuation and condition of the owner’s property on this date is used to determine its value. A “Notice of Assessment, Taxable Valuation and Property Classification” is then sent to all property owners about March 1. The notice indicates three values for each property: Assessed Value and Taxable Value.

Assessed Value is equal to approximately half of the estimated market value of the property.

Taxable Value is the value used to compute the taxes on the property.

Property taxes are calculated using the following formula:

40% of the Taxable Value ÷ $1,000 x millage rate = Tax Levy (amount of taxes to be paid)

DISTRICT	School District	Annual Rate / M
Colquitt County – Unincorporated	Colquitt County	23.472
City of Moultrie	Colquitt County	31.891
City of Doerun	Colquitt County	32.333
City of Norman Park	Colquitt County	40.587
City of Riverside	Colquitt County	31.915

SALES TAX
Georgia has a 4% State Sales Tax and Colquitt County has 2% for education and a 1% Special Purpose Local Option Sales Tax that are approved by the local voters for specific projects.

Ad Valorem Tax Concessions: New or expanding businesses locating in Colquitt County may be eligible for local ad valorem tax concessions. Our concession structure is based on the company’s capital investment, number of jobs created, and their average wage rate.

Freeport Exemption: Colquitt County provided 100% property tax exemption on raw materials, work in progress, and inventory of completed products shipped out of state.

Regional Training Program: The local Workforce Investment Board has a training program that will pay 50% of your payroll for up to ¼ of your workforce while they are in training. The program could save up to 12 ½ % on your total payroll expense. There are no time or monetary limits on the program.

Building Permits: The Development Authority will work with the Moultrie City Council and the Colquitt County Commission to reduce any building permit fees for the project.

Utility Tap Fees: The Development Authority will work with the City of Moultrie for reduced tap fees for water & sewer service at the new facility.

Lease Concessions: Lease concessions on existing buildings may be available for certain projects. Our investment depends on your investment in capital improvements, equipment and jobs.

IRB Financing: The Moultrie Colquitt County Development Authority will act as a financing vehicle to issue tax exempt bonds to qualifying projects.

Other Assistance: The Development Authority will serve as your agent where appropriate for site procurement, preparation, construction and lease improvements. You are responsible for generating the specifications for the finished building to ensure the finished project meets your needs and expectations.

For a complete list of business tax incentives and other programs, descriptions of each and how to qualify, check out the Georgia Business_Incentives_Brochure_8 25 14, or visit the Georgia Department of Economic Development site or the Georgia Department of Community Affairs site. GDEcD and DCA work closely with Georgia communities to develop unique incentives for nearly every situation.

In addition to the numerous statewide incentives that will be made available to new or expanding business in Georgia, Moultrie and Colquitt County offer the following local concessions.

Job Tax Credits: Colquitt County is a member of a joint development authority and can offer a $3,000 tax credit for each job created by a new or expanding business through the State of Georgia’s B.E.S.T. program. Qualified companies that create new, full-time jobs can earn this credit each year, for 5 years, provided the new jobs are maintained. The credit can be used to offset 100% of the company’s Georgia Corporate income tax liability and payroll tax liability in any taxable year, following the year in which the credits are earned. Any credits earned in excess of the company’s corporate income tax liabilities may be applied toward 100% of their payroll tax liability. Un-used credits may be carried forward and applied for up to ten years. The tax credit can amount to $1,500,000 based on 100 jobs.

The state also offers a Port Job Tax Credit Bonus. The port tax credit is a $1,250 per job bonus for taxpayers with large increases in shipments into and out of a Georgia port. The $1,250 is added to the job tax credit. The tax credit and port bonus can amount to $625,000 based on 100 jobs.

Retraining Tax Credit: The State of Georgia’s B.E.S.T. program provides a “Retraining Tax Credit” to companies that provide qualified retraining their employees, such as re-training for new equipment, new technology, or new operating systems. This credit can be used to offset up to 50% of the taxpayer’s total state income tax liability for a taxable year. Credits claimed but not used may be carried forward 10 years for eligible applicants. Tax credits equal 50% of the direct costs of approved retraining programs for full-time employees up to $500 per student are available. The credit can be taken every year that the company trains their employees for new jobs/skills. Any new employees can be trained under the Quick Start Program at no cost.

Quality Jobs Tax Credit – Companies that create at least 50 jobs in a 12 month period that each pay wages at least 110% of the county average are eligible to receive a tax credit of $2500-$5000 per job, per year, for up to five years, based on the scaled system below. New quality jobs created within seven years can qualify. Credits may be used to offset the company’s payroll withholding once all other tax liability has been exhausted, and may be carried forward for ten years. New jobs may count toward either the Jobs Tax Credit or the Quality Jobs Tax Credit (if applicable).

Average Wage Requirement (% of county average) Credit Value per New Quality Job

≥110% and <120% $2500

≥120% and <150% $3000

≥150% and <175% $4000

≥175% and <200% $4500

200% or greater $5000

Investment Tax Credits: The investment tax credit is offered as an alternate to the Job Tax Credit. The program allows a taxpayer that has operated an existing manufacturing facility in the state for the previous three years to obtain a credit against income tax liability. Colquitt County companies must invest $50,000 to receive a 3% credit. The credit is a percentage of the total value of all qualified property and cannot be more than 50% of the taxpayer’s total state income tax liability for that taxable year.

Child Care Credit: The State of Georgia’s B.E.S.T. program provides a “Child Care Tax Credit” for companies who sponsor qualified childcare for their employees. This credit can be used to offset up to 50% of the taxpayer’s total state income tax liability for a taxable year. Any credit claimed but not used in a taxable year may be carried forward for three years from the close of the taxable year in which the cost of the operation was incurred. Employers who purchase or build qualified child care facilities are eligible to receive credits equal to 100% of the cost of construction. Employers who provide or sponsor child care for employees are eligible to receive credits equal 75% of the employer’s direct cost.

Example: A taxpayer has direct child care costs of $400,000 in a given year and is eligible to receive a $300,000 tax credit [75% x $400,000]. Taxpayer invests $1 million for the construction of a childcare facility and is eligible for a credit in the first year of $100,000 [10% x $1 million]. Taxpayer can add the $300,000 tax credit and the $100,000 credit if the total credits do not exceed 50% of the tax liability in a given year.

In 2005, Georgia became the first state in the Southeast to adopt a “Single Factor Gross Receipts” apportionment formula. As indicated by its name, the new “Single Factor Gross Receipts” formula will treat a company’s Gross Receipts, or sales factor, as the only relevant factor in determining the portion of that company’s income that is subject to Georgia income tax. Previously, Georgia used a three-factor apportionment formula, but for the 2008 tax year and thereafter, Georgia property and payroll will not factor into the calculation of a company’s corporate income tax. This new single sales factor apportionment formula significantly reduces the effective rate of Georgia income taxation of Georgia-based manufacturing, distribution and service companies with substantial sales to customers outside Georgia.

Example: Assume that, for the 2009 tax year, In-State Manufacturing Co., Inc. has the following total overall taxable income and gross receipt sales in Georgia as compared to total gross receipt sales:

Taxable Income: $10 million

Percent of Gross Receipts in Georgia: 13%

Accordingly, in 2009, only $1.3 million (.13 x $10 million) of In-State Manufacturing Co., Inc.’s income would be subject to Georgia’s 6% corporate income tax under the new Single Factor Gross Receipts formula. If the sales in Georgia compared to total sales were less than 13%, then the amount subject to Georgia’s income taxes would also be less. In addition, Georgia does not use the so-called “Throw Back Rule,” under which many states tax income from sales of goods or services to out of state customers if the customer’s state does not already tax that income.

Qualified new and upgraded equipment that is directly used in the manufacturing process of tangible personal property is exempt from sales and use tax for a new or expanded plant. For each $1,000,000 invested in qualified new machinery, you can save $70,000, based on the current tax structure.

The Department of Community Affairs offers up to $500,000 in EIP (Employment Incentive Program) grants is available with the expansion or location of a Moultrie business. The grant money is to be used for infrastructure improvements to the property or low interest loans.

Quick Start helps companies maintain a competitive advantage by preparing workers for skill sets needed tomorrow as well as today. Some key facts:

• A Quick Start training regimen is shaped specifically for the skills that a company is looking to develop in its employees
• Training is conducted in classrooms, mobile labs or onsite at the company
• Quick Start is provided at no charge by the Technical College System of Georgia
• The program is versatile: Quick Start has prepared workers to assemble intricate aircraft components, grow bacteria for vaccines, manufacture plastic and metal products and field inquiries from customers, by phone or online

Area Development magazine ranks Quick Start no. 1 in the country, and “The CBS Evening News” profiled the program in late 2011. Watch ▶

Quick Start was also key to helping Kia Motors develop its manufacturing facility in West Point, Ga. According to former Georgia Department of Economic Development Commissioner Chris Cummiskey:

“Our people went over to Korea to see how [Kia] runs a manufacturing plant. Then we replicated that, set up an onsite training center, sorted through 30,000 applications, found the best, and trained more than 1,000 people. On the first day, the company opened at 100 percent efficiency.”

HOPE is Georgia’s unique program that rewards high school students’ hard work with financial assistance in degree, diploma, or certificate programs at any Georgia public or private college, university, or technical institute. The program will ensure your company will have an educated, trained workforce as long as it is located in Georgia.