Henry County leaders discuss FLOST referendum, timeline and how proceeds would be used

Henry County officials, municipal leaders and state association representatives met in a joint session to review the new Floating Local Option Sales Tax (FLOST), explain eligibility rules and warn that an intergovernmental agreement (IGA) must be completed quickly if the county and cities want a FLOST question on the November ballot.

The meeting centered on House Bill 581 (2024), the law that created FLOST and a statewide floating homestead exemption. Phil Sutton, a consultant with Rochester DCCM retained by Henry County, told elected officials that FLOST revenue “is to be used exclusively to provide property tax relief.”

The discussion clarified how FLOST would operate in practice and why local agreements matter. Sutton said the tax can be levied at up to 1 percentage point of sales tax, collections would begin January 1, 2026 if voters approve the measure on Nov. 4, 2025, and the county would use 2026 sales-tax receipts to compute the millage rollback applied in tax year 2027. He warned that the calendar is tight: the IGA and related resolutions must be completed and submitted to election officials in August or the county would need to wait for an off-cycle…