Marietta City Council opts out of HB 581 floating homestead exemption

The Marietta City Council held a special called meeting on February 25, 2025, to discuss House Bill 581, which pertains to the floating homestead exemption. This meeting marked the third and final hearing on the bill, which was signed into law on April 18, 2024, and aims to stabilize property taxes for homeowners in response to significant increases over the past decade.

The floating homestead exemption is designed to limit property tax increases to the rate of inflation, thereby providing financial relief to homeowners. Under this bill, homeowners in Marietta would benefit from an exemption that would not allow their property taxes to increase beyond inflation, in addition to any existing residential homestead exemptions.

During the meeting, it was highlighted that Marietta's current floating homestead exemption, established in 2002, has effectively frozen property taxes for qualifying homeowners. This means that homeowners who have maintained their residency since 2002 have paid the same amount in taxes, without adjustments for inflation. The council discussed the implications of opting out of the new HB 581 exemption, concluding that maintaining the existing exemption would provide the greatest benefit to taxpayers without incurring additional administrative costs.

After a public hearing, the council voted unanimously to approve the resolution to opt out of HB 581, ensuring that the current exemption remains in place. This decision was made with the understanding that the school board would make its own independent decisions regarding tax rates.

The meeting also touched on potential future considerations regarding homestead exemptions for properties exceeding one acre. The council discussed the possibility of extending exemptions to larger parcels of land, similar to the county's existing policy, which allows exemptions for properties up to ten acres.

In summary, the Marietta City Council's meeting focused on the implications of House Bill 581, ultimately deciding to maintain the existing floating homestead exemption to provide continued tax stability for homeowners. The council's actions reflect a commitment to supporting local taxpayers amidst ongoing discussions about property tax regulations.