By: Laura-Jane Hatcher (WRGA News)
A move made by the Floyd County Commission Tuesday has made the county more attractive to potential manufacturers, officials claim.
Amidst budget struggles, the commission agreed to not instate an excise sales tax on energy used in the manufacturing process for manufacturers in Floyd County. This comes after a decision made by state legislators in March to allow the tax exemption on energy for manufacturers in Georgia. While these factories do not have to pay the 4% state sales tax, the Georgia house gave local governments the choice to levy a supplemental tax that would cover the losses cities and counties will inevitably face. Though Floyd is estimated to lose $80,000 this year from the tax exemption, Interim County Manager Gary Burkhalter said there will be a payoff in the long-run.
“We feel that, by not imposing this tax, it will give us an advantage through economic development to where we will benefit in the long-run with future jobs being provided,” Burkhalter said. “The anticipation would be we would recoup this in other ways overtime.
According to Ken Wright, Director of Business and Industry for the Rome Chamber of Commerce, this payoff could readily come from new factories and businesses, enticed by the tax exemption, setting up shop in Floyd County. He said both Gordon and Bartow counties have thrown the sales tax back on, giving us a unique advantage in drawing industry here.
The only sales tax to be slashed for manufacturers is the local option sales tax and SPLOST. The 1% portion of the fee that feeds local education will still be imposed.