§ 78-91. Adopted.

(a)

Eligible property. The county adopts, grants, ratifies and confirms 100 percent exemption of the value of the following tangible personal property as set forth below from ad valorem taxation as set forth in Ga. Const. art. VII, § II, ¶ III:

(1)

Inventory of goods in the process of manufacture or production, which shall include all partly finished goods and raw materials held for direct use or consumption in the ordinary course of the taxpayer's manufacturing or production business in the state. The exemption provided for in this subsection shall apply only to tangible personal property that is substantially modified, altered or changed in the ordinary course of the taxpayer's manufacturing, processing or production operations in this state.

(2)

Inventory of finished goods manufactured or produced within the state in the ordinary course of the taxpayer's manufacturing or production business when held by the original manufacturer or producer of such finished goods. The exemption provided for in this subsection shall be for a period not exceeding 12 months from the date such property is produced or manufactured.

(3)

Inventory of finished goods which, on January 1, are stored in a warehouse, dock or wharf, whether public or private, and which are destined for shipment to a final destination outside the state and inventory of finished goods which are shipped into the state from outside this state and stored for transshipment to a final destination outside this state. The exemption provided for in this subsection shall be for a period not exceeding 12 months from the date such property is stored in this state. Such period shall be determined based on application of a first-in, first-out method of accounting for the inventory. The official books and records shall contain a full, true and accurate inventory of all such property, including the date of the receipt of the property, the date of the withdrawal of the property, the point of origin of the property, and the point of final destination of the property, if known. The official books and records of any such warehouse, dock or wharf, whether public or private, pertaining to any such property for which a freeport exemption has been claimed shall be at all times open to the inspection of all taxing authorities of this state and of any political subdivision of this state.

(b)

Definitions. The following words, terms and phrases, when used in this section, shall have the meanings ascribed to them in this subsection, except where the context clearly indicates a different meaning:

Destined for shipment to a final destination outside this state includes that portion or percentage of an inventory of finished goods the taxpayer can establish, through a historical sales or shipment analysis, either of which utilizes information from the preceding calendar year, or other reasonable, documented method, is reasonably anticipated to be shipped to a final destination outside this state. Such other reasonable, documented method may only be utilized in the case of a new business, in the case of a substantial change in scope of an existing business, or in other unusual situations where an historical sales or shipment analysis does not adequately reflect future anticipated shipments to a final destination outside this state. It is not necessary that the actual final destination be known as of January 1 in order to qualify for the exemption.

Finished goods means goods, wares and merchandise of every character and kind, but shall not include unrecovered, unextracted or unsevered natural resources, or raw materials, or goods in the process of manufacture or production, or the stock-in-trade of a retailer.

Raw materials means any material, whether crude or processed, that can be converted by manufacture, processing or combination into a new and useful product, but shall not include unrecovered, unextracted or unsevered natural resources.

Stock-in-trade of a retailer means finished goods held by one in the business of making sales of such goods at retail in this state, within the meaning of O.C.G.A. § 48-5-48.2, when such goods are held or stored at a business location from which such retail sales are regularly made. Goods stored in a warehouse, dock or wharf, including a warehouse or distribution center which is part of or adjoins a place of business from which retail sales are regularly made, shall not be considered stock-in-trade of a retailer to the extent that the taxpayer can establish, through an historical sales or shipment analysis, either of which utilizes information from the preceding calendar year, or other reasonable, documented method, the portion or percentage of such goods that is reasonably anticipated to be shipped outside this state for resale purposes.

(Res. of 8-14-1989; Res. of 11-28-1995; Res. of 1-28-1997; Res. of 1-28-1998)