The Application for Freeport Exemption Inventory (PT-50PF) is the Chatham County Board of Assessors form a business files to claim the freeport exemption on inventory it held on January 1 of the tax year. It is one of the Chatham County property tax forms for business owners and is filed together with the Business Personal Property Tax Return (PT-50P). On this page you can fill out the form online on FillingPDF and download or print the completed PDF; the form is published by the Board of Assessors and is returned to the county.
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What is PT-50PF?
The Application for Freeport Exemption Inventory (PT-50PF), printed on the form as Application for Freeport Inventory Exemption, is the Chatham County Board of Assessors form a business uses to claim a freeport exemption on inventory held on January 1.
The form cites O.C.G.A. 48-5-48.1, 48-5-48.2, 48-5-48.5 and 48-5-48.6. You report inventory at 100% full cost, including freight, burden, overhead and other charges, then apply the exemption percentages. The result is the total Freeport exemption (line 7a) and the total taxable inventory (line 7b), which you carry to the Business Personal Property Tax Return (PT50P).
The form is organized by level and category:
- Freeport Level 1, Category 1: raw materials and goods in process of a manufacturer.
- Category 2: finished goods manufactured in Georgia, held by the original manufacturer less than 12 months.
- Category 3: finished goods of a distributor held less than 12 months and destined for out-of-state shipment.
- Category 4: stock in trade of a fulfillment center held less than 12 months.
- Freeport Level 2: finished goods held for sale in the state that would not otherwise qualify for Level 1.
The form notes that not all counties offer Level 1 or Level 2, and the county's forms page says the application was revised to include all levels, some of which, such as Level 2, are not available in Chatham County. The form is not a business personal property return; it accompanies one.
Who needs to file PT-50PF?
Businesses that hold inventory on January 1 and want a freeport exemption on it file this application with the Board of Assessors, attached to their Business Personal Property Tax Return (PT50P). The explanation on the form groups them by activity:
- Manufacturing or production businesses (Categories 1 and 2).
- Wholesale or distribution businesses holding finished goods in a warehouse, dock or wharf for shipment to a final destination outside the state (Category 3).
- Fulfillment centers holding goods for remote purchasers who buy by electronic, internet, telephonic or other remote means, with the stock shipped from the center to another location (Category 4).
- Businesses selling finished goods in the state whose inventory would not otherwise qualify for Level 1 (Level 2). The county's forms page says Level 2 is not available in Chatham County.
Exclusions printed on the form: for Level 1, "Finished Goods" does not include natural resources, raw materials, goods in process or the stock in trade of a retailer, and "Raw Materials" does not include packing materials or unrecovered, unextracted or unsevered natural resources. Check with the county for the exemption percentage for each category. The taxpayer signs the oath, and a preparer who completes the form also signs.
When to file PT-50PF
File the application by the date shown in the DUE DATE box at the top of the form; that is the last day to receive the full exemption. The form is filed with the PT50P return, and inventory values are reported as of January 1 of the taxable year.
If you file after the due date, the form states that a reduced exemption may apply:
- Filed April 2 to April 30: 66.67% of the full exemption.
- Filed May 1 to May 31: 58.33%.
- Filed on June 1: 50%.
Failure to file by June 1 waives the entire exemption for the year (0.0%). The form sets no processing time.
Documents you need
- Business Personal Property Tax Return (PT50P): attach this application to it; the form says to file it with the PT50P taxpayer return and to carry the totals to PT50P, Page 1.
- Written reports supporting the freeport exemption: line 9b asks whether the taxpayer has them and, if so, where the books and records are located; no attachment is called for on the form.
How to fill out PT-50PF
Complete the header information
Check the tax year, account number, due date, map and parcel I.D. number and NAICS number. If the taxpayer name or mailing address is incorrect, write the correct NAME, ADDRESS and CITY, STATE, ZIP in the box provided.
Describe the type of business
On line 1, describe the type of business.
Enter valuation and cost methods
On line 3, list the method of inventory valuation used and the method of inventory cost identification. Report all values at 100% full cost as of January 1 of the taxable year, as line 2 requires.
Summarize your inventory
Line 4a: total value of all inventory held on January 1 of the taxable year. Line 4b: total value of all inventory held as stock in trade of a retailer as of that date.
Enter Level 1 supply and parts amounts
Lines 5a to 5d: finished goods held longer than 12 months, packaging materials, other expensed supplies and spare parts inventory. Not all counties offer Level 1, so check the exemption percentage with the county.
Figure Level 1 categories on line 5e
Enter the combined full cost on line 5e, then for each of Categories 1 to 4 enter the full cost, multiply by the exemption percentage and write the exemption amount. Category 3 takes its full cost from the worksheet in section 8.
Total the Level 1 exemption
On line 5f, apply the Level 1 exemption percentages and enter the combined exemption amount, which is the total Freeport Level 1 exemption.
Complete Level 2 if it applies
Line 6a: total cost of merchandise from line 4a, excluding the amounts on lines 5b, 5c, 5d and 5e. Line 6b: multiply 6a by the Level 2 exemption percentage. The county forms page says Level 2 is not available in Chatham County.
Total the exemption and taxable inventory
Line 7a: add lines 5f and 6b; enter it here and on PT50P, Page 1, Line P. Line 7b: subtract 7a from 4a; enter it here and on PT50P, Page 1, Line I.
Fill in the Category 3 worksheet
If you claim Category 3, complete lines (a) to (e) in section 8: total finished goods shipments, out-of-state shipments, the percentage ('b' divided by 'a'), January 1 inventory excluding items stored over 12 months, and the estimate ('c' times 'd'). Enter the result on Page 1, line 5e, Category 3.
Provide supporting information
Line 9a: list the physical location of inventory in the county. Line 9b: mark No or Yes for written reports supporting the exemption and give the location of books and records. Line 9c: name and contact information for the person who answers questions about the inventory.
Sign, review and download the PDF
The taxpayer signs and dates the oath on line 10 with title, and a preparer signs if one completed the form; leave section 11 for the Board. Check every line, then download or print the completed PDF from FillingPDF and attach it to your PT50P.
How to submit PT-50PF
The form names one channel: return it to the county at the address in the County Name and Return Address box, filed with the PT50P taxpayer return.
- Attach to the PT50P. Line 7 says to attach and file this form with the PT50P taxpayer return. Enter the line 7a total on PT50P, Page 1, Line P, and the line 7b total on PT50P, Page 1, Line I.
- Return address. The form says to return the completed form to the address listed on it. The form is a printed PDF, and the county's forms page asks users to right-click and save a form to view it if it will not open in the browser.
- Questions. The form has an "if assistance needed call" box at the top for the county's contact details.
The form states no fee. Contact the Chatham County Board of Assessors for filing questions; the forms page is at https://boa.chathamcountyga.gov/Forms. FillingPDF lets you fill out and download the PDF; submission follows the channels above.
Common mistakes to avoid
- Filing after the DUE DATE printed on the form and expecting the full exemption; late filing reduces it, and nothing filed by June 1 waives the whole exemption.
- Reporting inventory at less than 100% full cost; line 2 requires full cost at level of trade, including freight, burden, overhead and other charges as of January 1.
- Entering amounts on line 6a without excluding the amounts already entered on lines 5b, 5c, 5d and 5e.
- Not carrying the totals to the PT50P: line 7a goes to PT50P, Page 1, Line P and line 7b to Page 1, Line I.
- Filing the application without the PT50P taxpayer return it is meant to accompany.
- Counting goods held over 12 months in the Category 3 estimate; line (d) of the Category 3 worksheet excludes inventory stored over 12 months.
- Not carrying Category 3 worksheet line (e) to Page 1, line 5e, Category 3.
- Leaving the oath on line 10 unsigned, or the NAME and ADDRESS block uncorrected when the printed data is wrong.
Frequently asked questions
What is Form PT-50PF?
PT-50PF is the Chatham County Board of Assessors' Application for Freeport Exemption Inventory. A business uses it to claim the freeport exemption on inventory held on January 1 and to compute its total exemption and taxable inventory, which are carried to the PT50P return.
When is the PT-50PF due, and what happens if I file late?
File by the date in the DUE DATE box on the form for the full exemption. Filing April 2 to April 30 gives 66.67%, May 1 to May 31 gives 58.33%, and June 1 gives 50%. Not filing by June 1 waives the entire exemption for the year.
Do I file the PT-50PF with the Business Personal Property Tax Return?
Yes. Line 7 says to attach and file the form with the PT50P taxpayer return. Enter the line 7a total on PT50P, Page 1, Line P and the line 7b total on PT50P, Page 1, Line I.
Is Freeport Level 2 available in Chatham County?
No. The county's forms page says the application was revised to include all levels and categories of freeport inventory, some of which are not available in Chatham County, such as Level 2. The form also says to check with the county for each level's exemption percentage.
Where do I send the PT-50PF?
Return the completed form to the address listed in the county name and return address box on the form, filed with your PT50P. The form names no other channel. The county's forms page is at https://boa.chathamcountyga.gov/Forms.
What value do I report for inventory on the PT-50PF?
Report inventory at 100% full cost at level of trade as of January 1 of the taxable year, including freight, burden, overhead and other charges. Line 3 also asks for your inventory valuation method and cost identification method.
Who signs the PT-50PF?
The taxpayer signs and dates the oath on line 10 and enters a title. A preparer who completed the form also signs, with title and date. Section 11, the disposition of the County Board of Tax Assessors, is for the Board's approval or disapproval.
Can I fill out the PT-50PF online on FillingPDF?
You can fill out the PDF online on FillingPDF and download or print it. FillingPDF is an independent service, is not connected to the Chatham County Board of Assessors and does not file the form; you return it to the county yourself.
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