Board keeps FY26 county millage at 15.733 mills; staff discusses House Bill 581 and a potential 'floss' sales‑tax option

The Henry County Board of Commissioners on Aug. 19 held the third and final public hearing on the FY26 budget and voted to adopt the county millage at the current rate of 15.733 mills.

Tax Commissioner Michael Harris and Budget Director Benita Campbell presented the FY26 General Fund and Special Service District budgets. Campbell told the board the adopted FY26 General Fund and Special Service District budget totals $287,797,000, a $28.1 million or 10.8% increase over the FY25 adopted budget. She said the budget assumes continuation of the current millage rate (15.733 mills) and is not built on using fund balance.

Harris reviewed how the millage is calculated and described property valuation, assessed value (40% of fair market value) and exemptions. He explained the county's frozen homestead exemption (enacted locally in 2004), which freezes the base year for a homesteaded primary residence and up to five contiguous acres at the base‑year fair market value for county tax calculations. He used examples showing how the frozen exemption can maintain a lower taxable value even as market value rises.

On the topic of the new statutory option, presenters discussed House Bill 581 and a related floating local option sales tax mechanism (referred to in the transcript as "floss" and sometimes compared to the county's existing LOST/FLOST arrangements). Staff explained that HB 581 allows counties and cities that opt in to use an additional local option sales tax to provide property tax rollback relief; the county and its four cities would need to opt in to collect the additional tax and then execute intergovernmental agreements to distribute the rollback. Presenters said staff analyses indicate about 99.5–99.6% of Henry County parcels will remain better off under the county's existing frozen homestead exemption, but that the floss option remains a tool that requires intergovernmental agreement and a ballot question (and that details remain to be finalized with city partners).

Board members thanked staff for the work. A motion to keep the millage at the current rate was made, seconded and approved; the chair called for the vote and announced the motion carried. Staff noted a tight timeline to finalize IGAs with cities if they intend to place a floss option on the November ballot and estimated a target of early September to submit materials to the elections department.

Discussion vs. decision: the board formally adopted the millage rate (decision) and separately engaged in a policy discussion about the new HB 581 sales‑tax mechanism and the need for intergovernmental agreements (discussion/direction). Implementation: staff will continue digest perfection, finalize any IGA language with cities if pursued and submit required election materials if the floss option moves forward.