City To Eye Inventory Tax Exemptions

Nine years after voters first approved the Freeport Referendum, the is looking to implement increasing tax exemptions for manufacturers and businesses holding inventories.

At its second February public meeting set for Thursday at 7 p.m., council is expected to conduct the first reading of an ordinance that would increase the Freeport tax exemption from 20 to 40 percent, beginning in 2013.

The move would mean increased reductions in property taxes for local manufacturers and businesses holding inventories of goods that were produced in Georgia. As an incentive to new and expanding industry, Cartersville has had a 20-percent Freeport exemption since 2004.

During his prior terms, Mayor Matt Santini has said creating jobs is the biggest challenge for the city. In a 2009 citizen survey, city residents overwhelmingly said city hall should attract business and industry, which would lead to more jobs, and lower taxes to improve the local economy.

Leaders are looking to continue increasing the exemption by 20 percent a year until it reaches 100 percent. One proposal is to adopt a resolution that would hike Freeport to 100 percent throughout a four-year period, but City Attorney Keith Lovell recommends council consider adopting each year new resolutions that would increase the tax exemption by 20 percent.

With its , Bartow County exempts 80 percent of the three classes of inventories from property taxes.

In Cartersville's , an effort to revitalize industrial areas affected by layoffs, reductions and closings, and as a result of other programs, various tax breaks are made available to manufacturers locating or expanding in certain areas. Bartow also uses tax breaks in its economic development efforts.

It's unclear how increasing property tax exemptions would affect , but education officials have indicated the in part necessitating recent .