Taxes on real estate and tangible personal property are levied by the city, county, school district, and the state as of January 1 of each year. The taxes are collected by the county. All rates are set at the local level, except state tax, which is fixed by Georgia law. The tax rates are set annually, but do not significantly change from year to year. All properties are assessed at 40% of fair market value. The effective tax rate represents total tax as a percentage of fair market value.
The Augusta-Richmond County countywide millage rate for 2019 is 35.406 mils, or an effective tax rate of 1.416%.
Example: Annual property taxes for $1,000,000 of real or personal property at a millage rate of 35.406 mills (1.416% effective rate) in Augusta would be as follows: $1,000,000 X 40% = $400,000 assessment; $400,000 x .035406 = $14,162 -- annual property taxes
Augusta allows new or existing manufacturers that invest $1 million or more in capital improvements to exempt the county portion of property taxes for five years. This amounts to approximately one-quarter exemption of the millage rate.
Augusta-Richmond County exempts up to 100% of inventory of the qualified product of a company from property tax under Georgia’s local-option “Freeport” law.
Raw material, work-in-process and finished goods inventory are all exempted in Augusta. Also, Augusta-Richmond County exempts property taxes for distribution centers and warehouse inventories if the inventory is destined to be shipped out of the state.
Corporate Income Tax
Georgia’s 5.75% corporate income tax rate applies only to the portion of income that is earned in Georgia. Currently, Georgia is transitioning to a sales only corporate income tax rate.
Georgia will be the first state in the Southeastern United States to make this change. There is no unitary tax, and Augusta-Richmond County does not have a local income tax or payroll tax.
Georgia companies pay the state sales tax of 4% at the time of purchase. The tax applies to purchases (other than real estate) delivered or stored in Georgia to be used or consumed in the business (not for resale).
This includes natural gas, oil, gasoline, telephone, artificial gas, steam, electricity and rentals. In addition to the State of Georgia sales tax of 4%, Augusta-Richmond County’s sales tax is 4%.
Georgia Personal Income Tax
Georgia residents are subject to tax on their net income at rates ranging from 1 percent to 6 percent. Married persons in the 6 percent bracket pay $340 plus 6 percent of their taxable income over $10,000. Income and deductions generally follow federal regulations. Exemptions are $2,700 for dependents and $2,700 personal exemption ($5,400 for husband and wife).