Voters will get the opportunity to help Union City attract up to 1,000 more jobs Nov. 8 general election by voting yes for the Freeport ad valorem tax exemption.

The referendum, slated to be Question 3 on the Union City ballot, affects goods being shipped out of state. Passing the referendum will not increase residential property taxes or decrease any existing tax collections.

In today’s competitive business environment, the Freeport Exemption has become a virtual requirement to attract regional and national warehouse and distribution facilities. Ninety percent of the counties in Georgia already offer Freeport Tax Exemption, which reduces the taxes paid by businesses on goods being shipped out of state. Any goods that remain in Georgia, or that are stored for more than one year, will continue to be taxed.

“It is critical that Union City be on a level playing field with other Georgia cities,” said Joddie Gray, administrator for the South Fulton Community Improvement District. “This type of economic development will help Union City to have balanced and well-managed growth by creating jobs without increasing residential property taxes.”

Because Union City does not currently have businesses that are subject to the Freeport ad valorem tax exemption, the city would not lose any revenue if the exemption is passed. If the referendum is enacted, the city stands to gain as much as $650,000 a year from additional industrial property tax revenue, as well as the potential to create more than 1,000 new jobs.

The Freeport ad valorem tax exemption includes goods that are in the process of being manufactured or produced, finished goods that are manufactured or produced in Georgia for a period not to exceed 12 months, and finished goods that are being distributed outside of Georgia that are stored in a warehouse, dock, or wharf for a period not to exceed 12 months.

For example, companies that produce items such as food, clothing, and furniture outside of Georgia currently have to pay taxes on all of the goods that are routed through a distribution center or warehouse in Union City, regardless of the products’ final destination.

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