CHATSWORTH, Ga. - Murray County voters will decide in November whether the county will grant a tax break for some business inventories.
Officials say job creation is suffering because the county doesn't already offer a freeport tax exemption, which eliminates taxes on some manufacturing and warehouse inventories.
"Some of the carpet manufacturers that would normally store their carpet here until it was shipped to whatever destination have moved their shipping operations to Gordon County or Dalton," said Commissioner David Ridley.
In Georgia, it's up to individual cities and counties to approve freeport exemptions. About 143 of the state's 159 counties offer some level of freeport exemption, according to the Georgia Department of Economic Development.
All of Murray's neighbors offer freeport exemptions. Voters in its county seat, Chatsworth, approved freeport exemptions to go into effect in 2011, Mayor Tyson Haynes said.
Mr. Ridley said Murray County officials hope to keep existing businesses and save jobs with the ballot referendum.
He said voters will decide on a 20 percent freeport exemption for 2011 that would increase by 20 percent each year to reach 100 percent.
A 20 percent freeport exemption went into effect this year in Whitfield County and Dalton. Whitfield County Commission Chairman Mike Babb said the exemption was used recently to recruit IVC US Inc., a vinyl floor manufacturer scheduled to begin operations in 2011.
He said freeport aims to save jobs and attract new ones, but added, "the bottom line is it's still a loss of revenues to your local governments."
"You either make it up with new businesses or you make it up by cutting your expenses at the local level," he said.
The initial 20 percent will cost Murray County about $48,000 a year and county schools about $126,000, he said.
"Nowadays we're concerned about losing $100 from our budget, so definitely $48,000 a year will be a substantial hit," said Mr. Ridley. "We'll just have to tighten our belt a little tighter and make some cuts in some areas to compensate."
Losing some tax revenue from freeport is "better than losing tax revenue and the jobs if companies move," said Dinah Rowe, president of the Chatsworth-Murray County Chamber of Commerce.
The exemption also will serve as a business tool to recruit new companies, she said.