Valdosta council approves resolution to remain under House Bill 581's floating homestead exemption

VALDOSTA, Ga. — At its Feb. 20 meeting the Valdosta Mayor and Council approved a resolution expressing the city’s intention not to opt out of House Bill 581, the state law that implements a floating homestead exemption and creates the option for cities to pursue a one-cent local sales tax to reduce property tax millage.

The resolution was presented by Chuck Jenkins, who described it as “a resolution expressing, the city's intention not to opt out of house bill 5 81.” Jenkins told the council HB 581 places cities “in by default” and that opting out would remove the city’s ability to use the measure’s mechanisms.

Why it matters: Councilmembers and staff said staying in the HB 581 framework could let Valdosta use sales-tax revenue to roll back property tax millage for homeowners. Jenkins and other speakers described the floating exemption as indexing the homestead exemption to inflation, with the State Revenue Commissioner setting the annual rate. Council discussion also focused on procedural deadlines and how a sales-tax referendum would work.

Details from the meeting: Jenkins said the floating homestead exemption would “limit the rate of taxable value, increase each year to the inflation rate determined by the State Revenue Commissioner.” He also told the council that “everything has to be completed by March 1 currently in order to opt out,” and later discussed annual opt-out windows that, if used, would require an opt-out question to appear on a subsequent ballot.

When asked what the sales-tax option could do to the property tax rate, Jenkins said, “we could roll it back approximately 4 middles. I mean, just nice round numbers,” and that the city’s current combined millage could move “from 6 and change… down to 2 and change.” Councilmembers and staff framed those figures as rough estimates tied to sales-tax revenue projections rather than guaranteed outcomes.

Councilmember questions also covered who pays the proposed sales tax and the county’s role if Lowndes County or other cities choose different paths. Jenkins noted the sales-tax revenue would come largely from visitors and nonresidents who shop in Valdosta, and that surrounding cities had taken different procedural approaches; for example, Lake Park was holding public hearings.

Action: A councilmember moved to approve the resolution “as presented,” a second was made, and the council voted by a show of hands with the motion approved.

What remains: The council did not adopt a local sales-tax referendum at the meeting; the resolution expresses the city’s intent to remain in the HB 581 framework and preserves the option to pursue a future referendum or other actions consistent with state law.

For the record: House Bill 581 and a constitutional amendment enabling it were discussed during the item; council members emphasized that the state legislature can change implementing procedures, and staff cautioned that key opt-out windows and ballot timing are governed by state deadlines.