Business Costs

PAULDING COUNTY PROPERTY TAXES AND ABATEMENTS

Paulding County Property Tax:

Paulding County has some of the most competitive property tax rates in Metro Atlanta. Property taxes are applicable to both real and personal property. Taxes are calculated using a 40% assessment rate that is applied towards the market value of the property. The assessed amount is then multiplied by the applicable millage (tax) rate which includes state, county and school district taxes. If the property is located within the City of Dallas a municipal millage rate is applied. The City of Hiram does not tax real or personal property.

Paulding County's 2013-2014 millage rates are as follows:

The following illustrates how annual property taxes would be calculated for a new or expanding company located in unincorporated Paulding County with a land, building and equipment value of $5,000,000:

It is important to note that depreciation of equipment reduces the amount of taxes due annually from the number shown above.

GEORGIA TAXES AND CREDITS (INCENTIVES)

Georgia Corporate Income Tax:

In 2005, Georgia became the first state in the Southeast to adopt a "Single Factor Gross Receipts" apportionment formula. This apportionment formula treats a company's gross receipts (or sales) in Georgia as the only relevant factor in determining the portion of that company's income subject to Georgia's six percent corporate income tax. Georgia is one of only 13 states exclusively using Single Factor Apportionment. Most states still use a traditional apportionment formula in which a company's in-state property and payroll factor into the calculation of a company's corporate income tax.

Single Factor Apportionment significantly reduces the effective rate of Georgia income taxation of companies with substantial sales to customers outside Georgia. In addition, Georgia does not use the so-called "Throw Back Rule," which many states use to tax income from sales of goods or services to out-of-state customers if the customer's state does not already tax that income.

The corporate income tax rate in Georgia is 6%. The following example illustrates how corporate income taxes would be calculated for a Paulding County manufacturer with the following total overall taxable income and gross receipt sales in Georgia:

To many companies, Georgia's single factor apportionment formula could mean savings of hundreds of thousands or even millions of dollars over the long term.

Georgia offers a range of corporate income tax and in some cases payroll withholding tax credits that enable companies to minimize or completely eliminate their state corporate income taxes and payroll withholding taxes which are already among the lowest in the nation. Credits available in Paulding County include:

• Paulding County/City of Dallas Opportunity Zone Job Tax Credit
• Georgia Job Tax Credit
• Port Tax Credit Bonus
• Quality Jobs Tax Credit
• Research & Development Tax Credit
• Mega Project Tax Credit
• Georgia Film, Television and Interactive Entertainment Tax Credit
• Child Care Tax Credit
• Work Opportunity Tax Credit Program (WOTC)