Peachtree City officials are grappling with the implications of a recent voter-approved property tax exemption, as discussions at the Town Hall meeting on December 17, 2024, revealed significant concerns about its financial impact on city revenue.

The exemption, which allows residents aged 65 and older to opt in or out, has raised questions about how it will affect the city’s property tax collections. City officials noted that approximately 60% of Peachtree City's taxable property is homestead residential, meaning the exemption may not hit the city’s finances as hard as it would in other areas, such as Tyrone, where 90% of properties are homesteaded. However, it was estimated that around $12 million of the city’s $24 million annual property tax revenue could be affected.

City Manager comments highlighted the complexity of calculating the exact financial implications, stating, “It’s not our entire digest,” and emphasizing that while the city may not "lose" revenue per se, it will not collect funds that would have otherwise been available without the exemption. The projected loss in revenue could reach between $3 to $4 million over time, raising concerns about the city’s ability to maintain services without increasing the millage rate.

Officials also discussed the potential for a Local Option Sales Tax (LOST) to offset some of the revenue loss, but cautioned that this would not create a surplus and would require careful adjustments to property tax rates. The conversation underscored the need for a balanced approach to budgeting, with some council members suggesting that trimming city expenses might be necessary to avoid raising taxes.

As the city navigates these financial challenges, residents expressed a strong desire for transparency and accountability in how the city manages its budget. The meeting concluded with a call for further discussions on contingency plans to ensure that the financial burden does not fall disproportionately on the community. The outcome of these discussions will be crucial as Peachtree City seeks to balance fiscal responsibility with the needs of its residents.