Commissioners discuss opting out of House Bill 581 floating homestead exemption

The Camden County Board of Commissions held a public hearing on February 18, 2025, to discuss House Bill 581, which introduces a statewide floating homestead exemption. The meeting, led by Chief Financial Officer Nancy Clark Gonzales, aimed to inform the public about the implications of this new legislation and the county's options regarding it.

Gonzales provided an overview of the existing homestead exemption, which has been in place since 2006. This exemption allows homeowners to freeze their property tax assessments at the value from the previous year, protecting them from rising property values. Since its implementation, it has saved taxpayers over $32 million, with nearly $13 million in savings over the last three years alone.

House Bill 581, passed in November 2024 and effective January 1, 2025, aims to address concerns over rapidly increasing property values. Under this new exemption, if a homeowner's property value rises, the increase would be limited to the rate of the consumer price index. For example, if a home valued at $100,000 sees a $10,000 increase, the taxable value would only rise by a maximum of $2,000 if the CPI is 2%. However, Gonzales noted that this new exemption offers less benefit compared to the existing one, as it allows for some increase in taxable value rather than a complete freeze.

The Board has already indicated its intent to opt out of this new exemption, a decision that must be finalized by March 1. The public hearing is part of a series of discussions to gather community input before making a final decision. Gonzales emphasized that the existing homestead exemption would remain in place, and any improvements made to properties would still be added to the frozen value, ensuring continued benefits for homeowners.

The meeting concluded without public comments, and the Board will proceed with the necessary steps to formalize its decision regarding House Bill 581.