Supporters of freeport inventory tax exemptions say they will make Dalton and Whitfield County more attractive to new businesses as well as to local firms looking to expand. But some residents have expressed concern about the potential impact on government budgets, such as the school system’s.

State law requires a vote on each of three different classes of inventory: partially finished goods and raw materials, finished goods stored by the original manufacturer and materials stored for shipment outside the state. Since the Dalton City Council and the Whitfield County Board of Commissioners have each placed freeport on Tuesday’s ballot, each of those three questions must be asked of both city and county voters. If approved by voters, the exemptions could go into effect in 2010.

That means Whitfield County voters who live outside the city will face three separate freeport questions. And city voters will have to vote six times, three each for the county and the city.

“It’s confusing,” said Melanie Suggs, executive director of the Dalton-Whitfield Joint Development Authority, during a presentation on the measures recently.

Whitfield County is one of just 15 Georgia counties without some form of freeport exemption, and the only Georgia county on I-75 without some form of freeport. Supporters say that puts the area at a disadvantage in attracting new businesses or keeping existing businesses, pointing to carpet companies building plants and facilities in neighboring states with freeport.

Catoosa County, Suggs said, has had freeport since 1999 and currently exempts 100 percent of inventory.

“Since 1999, they’ve had a 70 percent increase in their tax digest,” she said. “During that period of time, Whitfield County has had a 52 percent increase in its tax digest.”

Gordon County has had freeport since 2003, Suggs said, and it currently exempts 40 percent of inventory.

“They have had a 30 percent increase since 2003 in their overall tax digest. Whitfield County over that period has had a 16 percent increase,” Suggs said.

Bartow County has had freeport since 2004. It exempts 80 percent of inventory value. In addition, Adairsville exempts 80 percent, and Cartersville exempts 40 percent, Suggs said.

“Since 2004, (Bartow County’s) tax digest has increased by 27 percent. During that same time period, Whitfield County’s tax digest has increased by 14 percent,” she said.

So if freeport passes, can we expect more new business? Supporters have been asked that in several forums. And they admit there are no guarantees.

“But if you look at the numbers, and you look at the fact this makes us more competitive, and we know we are not at our most competitive now, freeport is the right thing to do,” said Suggs in one forum.

But what about the impact on local government and school finances?

If the measures pass, the Dalton City Council and the Whitfield County Board of Commissioners could exempt up to 100 percent of qualified inventories. But they have pledged to exempt only 20 percent at first, though some have said the city and the county could continue to roll it back in the future if it is financially feasible.