Savannah Chamber

71 Savannah Area Chamber of Commerce 2019 Economic Trends 26 Sales Tax: 7% on the dollar on purchases of all goods and utilities (4% state + 2% local option + 1% Education Special Purpose Local Option Sales Tax). Food items are exempt from state sales tax, but are subject to county taxes of 3% (2% local option + 1% Education Special Purpose Local Option Sales Tax). Sales Tax Exemptions: Apply to manufacturing machinery used directly in making products for sale, machinery and equipment used for pollution control, raw materials that will become a component of a finished product, packaging materials, certain computer equipment, and standard software. Parts to repair airplanes are also exempt from sales taxes as of 2014. A full listing of sales and use tax exemptions in Georgia can be found at: https://dor.georgia.gov/documents/2018-list-sales-and-use-tax- exemptions Hotel/Motel Room Tax: 6%, with the total tax for rooms 13% (7% sales tax plus 6% lodging tax). Personal Income Tax: State of Georgia Governor Nathan Deal signed H.B. 918 on March 2, 2018 reducing the highest personal income tax rates to 5.75%, effective for 2019 and future years. Single: $230 on first $7,000 plus 5.75% of everything over that Married: $340 on first $10,000 plus 5.75% of everything over that Married filing separately: $170 on first $5,000 plus 5.75% of everything over that State Taxes: Georgia does not have a unitary tax. Businesses are taxed only on income apportioned to Georgia. Corporate Income Tax: Corporations that own property, do business in Georgia, or receive income from Georgia sources are subject to corporate income tax. As of January 2019, the rate of taxation is 5.75% of a corporation's Georgia taxable net income. The tax calculation is based entirely on gross receipts earned in Georgia, the first southeastern state to adopt the Single Factor Gross Receipts formula. Corporate Net Worth Tax: This tax is based on the net worth of a corporation and is levied in exchange for the privilege of doing business or exercising a corporate franchise in Georgia Corporations may also have to pay a net worth tax. For net worth years beginning on or after January 1, 2018 (those reported on the 2017 income tax return), corporations with a net worth of $100,000 or less are not subject to tax but must file a return. The maximum is $5,000 for a net worth in excess of $22 million. Unemployment Insurance: Georgia's unemployment insurance for newly liable employers averages 2.7% of each employee's first $9,500 in earnings, with a maximum weekly benefit of $330. After an employment record is established in Georgia (36 months, a new rate based on employee separations is developed.) Worker's Compensation: Georgia law requires employers to insure their workers against job-connected accidents. This insurance is carried with private companies unless the employer self-insures. Self-insured employers must provide proof of financial ability to the State Workers' Compensation Board, which may require posting of a bond. Private insurance companies return about 2% of the premiums received from employers to the board to cover its operating costs, and self-insured employers pay the board a fee (about 2% of estimated premiums) to cover these costs. A company is eligible for a 7.5% reduction in rates if it operates as a certified drug-free workplace. Business and Occupation Tax: Every for-profit business in the City of Savannah and Chatham County must pay a local business or occupation tax based upon gross receipts or profitability classification. For the city of Savannah, profitability classes range from $0.69 per $1,000 for Class A to $1.19 per $1,000 for Class F. City of Savannah's minimum tax is $85 per year. Maximum is $21,674 for a business with gross receipts in excess of $50 million. For Chatham County, profitability classes range from $0.47 per $1,000 for Class A to $0.97 per $1,000 for Class F. The County tax table reflects a $82 minimum and a $9,775 maximum. The City or county tax table determines the exact tax amount. Sources: Savannah Economic Development Authority, Georgia Department of Labor, Georgia Department of Revenue. Revised 01/19.

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