Savannah Chamber

47 Savannah Area Chamber of Commerce 2015 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. Sales tax on food items is 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 for airplane repair are exempt from sales taxes as of 2014, and an exemption for energy used in manufacturing will be fully phased in by 2016. A full listing of sales and use tax exemptions in Georgia can be found at: http://www.georgia.org/competitive-advantages/tax-exemptions/sales-tax-and-use-tax-exemptions/ Hotel/Motel Room Tax: 6%, with the total tax for rooms 13% (7% sales tax plus 6% room tax). Personal Income Tax: State of Georgia Single: $230 on first $7,000 plus 6% of everything over that Married: $340 on first $10,000 plus 6% of everything over that Married filing separately: $170 on first $5,000 plus 6% 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. The rate of taxation is six percent 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 operating a business or exercising a corporate franchise in Georgia. The minimum tax is $10 for a net worth less than $10,001. 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 $320. 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 related 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 an $82 minimum and a $9,775 maximum. A city or county tax table provides the exact tax amount. Sources: Savannah Economic Development Authority, Georgia Department of Labor, Georgia Department of Revenue, City of Savannah, Chatham County. Revised 12/14.

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