Property and Development Incentives

Paulding County Property Tax Abatements

Paulding County Economic Development (PCED) can provide new and expanding businesses with property tax abatements that average 40%-90% annually for 5-20 years. Abatements are applied to all of the applicable property taxes shown in the previous section.

The percentage and term of the taxes abated for a project is based on the following:

  1. New jobs that will be created from the project
  2. Current number of jobs (if an existing company)
  3. Average wage rate for the facility
  4. New capital investment (land, building and equipment) for the project

Paulding County offers a great deal of flexibility with its property tax abatements. The abatement can be front loaded or accelerated in order to achieve greater savings in the initial years of the project. In addition they can be spread out evenly over the term of the abatement or any combination thereof. There is no minimum investment required for property tax abatements; however, due to the associated legal fees projects should have a capital investment in land, building and/or equipment of at least $2 million in order to realize the savings from the abatement.

Additional Incentives and Resources

County Owned Land and Facility Construction

Paulding County owns several industrial and business development parks including the Class A Paulding Commerce Park, the Dallas Industrial Park and Silver Comet Field at Paulding Northwest Atlanta Airport Technology Park. The aforementioned properties offer well planned and managed industrial locations at extremely competitive prices, along with opportunity zone designation.

The county also provides new and expanding businesses with multiple options for the design, construction and lease of new buildings. Depending on the size of the project, county owned buildings can be offered at extremely competitive lease rates for the first several years of a business' operations and, depending on the amount of jobs created, additional incentives can be explored.

County Fast Track Permitting and Reduced Development Fees

Building and grading permits in unincorporated Paulding County and the City of Hiram are issued by Paulding County Development Services (PCDS). Projects that have a short time frame for construction can be designated for fast track review and approval. For projects receiving fast track review, PCDS has the ability to issue permits in as little as 5 to 10 working days, provided the information submitted by the project's engineer is correct.

Paulding County will strongly consider the reduction and in some cases the waiver of building permit, water tap and other development fees for projects that result in significant job creation or capital investments.

Sales and Use Tax Exemption

Georgia and Paulding County help companies lower their cost of doing business by offering the ability to purchase various types of goods and services tax free. Several key exemptions are outlined in the table below. The sales and use tax in Paulding is 7% which includes state and local taxes.

Exemption
Description
Manufacturing Machinery and Equipment
Manufacturing machinery and equipment that is integral and necessary to the manufacturing process and used in this state is exempt from sales tax. Qualifying machinery or equipment must be purchased for a new manufacturing facility, as replacement machinery in an existing manufacturing facility, or for upgrade or expansion of an existing manufacturing facility. [GA. Comp. R. & Regs. 560-12-2-62]
Repair to Industrial Machinery
The sale or use of repair or replacement parts, machinery, clothing, molds, dies, waxes or tooling for machinery that is necessary and integral to the manufacture of tangible, personal property in an existing manufacturing plant is exempt from taxation.
Raw Materials and Packaging
Materials used for further processing, manufacture, or conversion into components of a finished product, materials coated upon or impregnated into a product being manufactured for sale, and non-reusable materials used to package products for sales or shipment may be purchased tax free.
Energy Used in Manufacturing
(New in 2013!)
The sale, use, storage, or consumption of energy that is necessary and integral to the manufacture of tangible personal property at a manufacturing plant in this state shall be exempt from all sales and use taxation except for the sales and use tax for educational purposes. This includes energy used directly or indirectly in a manufacturing facility. The exemption will be implemented over four years, with 25 percent phased in each year beginning January 1, 2013 and reaching 100 percent on January 1, 2016.
Primary Material Handling Equipment
Machinery and equipment used to handle, move or store tangible personal property in a new or expanded distribution or warehouse facility where the total purchase or expansion is values at $5 million or more is exempt. The distribution or warehouse facility may not have retail sales equal or greater than 15 percent of the facility's total revenues. [GA. Comp. R. & Regs. 560-12-2-103]
Pollution Control Equipment
Machinery and equipment used for the primary purpose of reducing or eliminating air and water pollution is exempt.
Computer Hardware and Software for High Technology Companies
The sale of certain computer equipment is exempt when the total qualifying purchases by a High Technology Company in a calendar year exceed $15 million. A High Technology Company must be classified under certain relevant North American Industry Classification system codes. [GA. Comp. R. & Regs 560-12-2-107]
Clean Room Equipment
Machinery and equipment and materials used in the construction of a clean room of Class 100 or less when the clean room us used directly in the manufacture of tangible personal property is exempt.
Water Costs
The sale of water delivered through mains, lines or pipes is specifically exempt.
Telecommunications Services
In-state calls are taxed. Interstate calls are exempt.

Inventory Tax Exemption

Business inventory is exempt from state and county property taxes. Paulding has a Freeport Exemption set at 100 percent of the inventory value. Exemptions apply to the following types of tangible personal property:


Small Business Tax Relief

Georgia allows for faster depreciation on equipment deduction, in which businesses can choose to claim the expense in year one as opposed to over several years.