Richmond County implements floating homestead exemption to counteract inflation

Richmond County officials are moving forward with the implementation of House Bill 581, which introduces a floating homestead exemption aimed at providing property tax relief to homeowners. This new exemption, approved in late 2024, adjusts the taxable value of a primary residence based on inflation, specifically the Consumer Price Index (CPI) from the previous year. For 2024, the CPI is set at 2.9%, meaning homeowners with a homestead exemption will see their taxable property value capped at this percentage increase, effectively shielding them from higher tax burdens due to inflation.

During the public hearing held on February 18, 2025, officials emphasized the importance of understanding the homestead exemption process. Homeowners must apply for the exemption through the Richmond County Tax Commissioner's Office by April 1 each year. Currently, approximately 31,000 homes in the county benefit from various homestead exemptions, representing about 38% of all properties.

The floating homestead exemption is designed to benefit both current and future homeowners, as it will apply to any property acquired after the base year of 2024. However, if a property is sold, the exemption does not transfer to the new owner, and a new base year will be established based on the property's fair market value at the time of purchase.

Officials also discussed the potential impact of this exemption on the county's annual tax digest, which aggregates the assessed values of all properties to determine tax rates. While the floating exemption may increase the overall exemptions and affect the rollback rate, it is structured to be revenue neutral for the county. This means that while some homeowners will see reduced tax obligations, the tax burden will shift to other property owners, ensuring that the county's ability to collect taxes remains intact.

In addition to the floating homestead exemption, discussions included the possibility of implementing a Local Option Sales Tax (FLOST) to further alleviate property tax burdens. If approved, this sales tax would be directly allocated to reduce property taxes, shifting the tax base from property taxes to sales taxes.

As Richmond County prepares to implement these changes, officials encourage homeowners to verify their current homestead exemptions and ensure they are receiving the maximum benefits available. The decisions made in the coming months will significantly shape the financial landscape for property owners in the county.