2020 Georgia Code
Title 48 - Revenue and Taxation
Chapter 5 - Ad Valorem Taxation of Property
Article 1 - General Provisions
§ 48-5-5. Acquisition of Situs by Foreign Merchandise in Transit

1. Foreign merchandise in transit shall acquire no situs so as to become subject to ad valorem taxation by political subdivisions of this state in which the port of original entry or the port of export of such merchandise is located. Such property shall not acquire situs by virtue of the fact that while in the warehouse the property is assembled, bound, joined, processed, disassembled, divided, cut, broken in bulk, relabeled, or repackaged. The grant of "no situs" status shall be liberally construed to effect the purposes of this Code section.
2. Property which meets all of the following qualifications shall acquire no situs so as to become subject to ad valorem taxation by political subdivisions of this state:
   1. Such property is owned by a person who is not a Georgia resident and does not maintain or operate a place of business in Georgia;
   2. Such person has contracted with a commercial printer located in Georgia for printing services to be performed in Georgia; and
   3. Such property is provided by such person to such printer for the performance of such services.

(Ga. L. 1969, p. 980, §§ 1, 2; Code 1933, § 91A-1006, enacted by Ga. L. 1978, p. 309, § 2; Ga. L. 1983, p. 716, § 2; Ga. L. 1998, p. 124, § 1.)

- Ga. L. 1998, p. 124, § 4, not codified by the General Assembly, provides that the amendment to this Code section is applicable to all taxable years beginning on or after January 1, 1999.

- For article discussing tax exemptions and deductions as incentives for establishment of foreign business in Georgia, see 27 Mercer L. Rev. 629 (1976). For article, "Freeport Exemption from Property Taxes for Inventory Stored in Georgia But Destined for Shipment Out-of-State," see 28 Ga. St. B. J. 108 (1991).

JUDICIAL DECISIONS

What constitutes goods "in transit."

- Imported stone tile/slab, which was stored at the taxpayer's pleasure for sale to anyone who might wish to purchase it, was not "in transit to a final destination" within the contemplation of O.C.G.A. § 48-5-2(2)(B) (see now O.C.G.A. § 48-5-2(4)(B)) and was consequently not exempt from ad valorem taxation under O.C.G.A. § 48-5-5. Seabrook Corp. v. Chatham County Bd. of Equalization, 195 Ga. App. 730, 394 S.E.2d 796 (1990).

Merchandise brought into the United States through the port of Charleston, South Carolina and transported, via land freight carrier to a container freight station in Chatham County, was not "foreign merchandise in transit" and was therefore not exempt from ad valorem taxation. Pier 1 Imports v. Chatham County Bd. of Tax Assessors, 199 Ga. App. 294, 404 S.E.2d 637 (1991).

Merchandise brought into the United States through the port of Savannah, Georgia, and transported monthly from Gotham County warehouse to the company's distributorship office in Los Angeles was not "in transit" and was therefore not exempt from ad valorem taxation. Los Angeles Tile Co. v. Chatham County Bd. of Tax Assessors, 209 Ga. App. 245, 433 S.E.2d 82 (1993).

RESEARCH REFERENCES

Am. Jur. 2d.

- 71 Am. Jur. 2d, State and Local Taxation, § 157 et seq.

- 84 C.J.S., Taxation, §§ 150, 160, 161, 216, 225.

- Situs as between different states or countries of tangible chattels for purposes of property taxation, 110 A.L.R. 707.

License or excise tax on merchandise brokers or persons performing similar functions as affected by commerce clause, 155 A.L.R. 239.

State tax on or in respect of goods shipped in interstate commerce to consignee for sale on consignor's account without previous sale or order for purchase, 4 A.L.R.2d 244.

Situs of vessels for tax purposes, 26 A.L.R.2d 1376.

Situs of tangible personal property for purposes of property taxation, 2 A.L.R.4th 432.

Situs of aircraft, rolling stock, and vessels for purposes of property taxation, 3 A.L.R.4th 837.