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City holds third public hearing on statewide floating homestead exemption, staff urges opt-out consideration
Summary
Council heard a staff explanation of House Bill 581and how the statewide floating homestead exemption could affect Chamblee revenue; the council was told March 1 is the local opt-out deadline unless the Legislature extends it.
City staff held a third public hearing Wednesday on House Bill 581, the 2024 state law that creates a statewide floating homestead exemption, and outlined how the measure could affect Chambleetax revenues if the city does not opt out.
A staff presenter said HB 581 "implements a statewide floating homestead exemption" that adjusts a property's base assessed value by inflation and "takes effect January 1." He told the council the exemption applies to homesteaded residential properties and is added to any existing homestead exemptions currently granted by the city.
Staff outlined the opt-out process and timeline: municipalities have been given until March 1 to consider opting out of the statewide exemption, though staff noted there is pending state-level legislation that could extend that deadline. If no local action is taken by the deadline, the statewide exemption will apply automatically and permanently, staff said.
The staff presentation included a revenue projection scenario estimating growing revenue loss over time if the city does not opt out; the presenter noted the city could see cumulative impacts measured in the hundreds of thousands to roughly $1 million by 2029 under the illustrative projection shown to council.
During public comment, resident Nathan Weiss told the council he supported opting out and investing local revenue in the community. Staff answered council questions about interactions between the bill's provisions and other county actions, explaining that the floating local option sales tax component is contingent on county and municipal participation in an intergovernmental agreement; at the time of the hearing, DeKalb County and several neighboring jurisdictions were proceeding with or considering opt-outs, making the sales tax component "off the table" for many municipalities.
Staff said the item will return to council as a resolution on the next business meeting agenda for possible formal action. No final vote on opting out was taken at this hearing.
