Cobb County commissioners vote 4-0 to opt out of state homestead exemption (HB 581)

The Cobb County Board of Commissioners voted 4-0 Tuesday to adopt a resolution opting the county out of the statewide adjusted base-year ad valorem homestead exemption established by House Bill 581.

The vote followed a public hearing in which county staff and more than two dozen residents and stakeholders spoke for and against the state measure. Chairwoman Lisa Cupid (Chairwoman, Cobb County Board of Commissioners) framed the decision around the county's existing homestead float and the potential effects on the separate county fire fund.

ACCG representative Dante, joined by presenter Steven White (Association County Commissioners of Georgia), summarized HB 581 for commissioners. White told the board that HB 581 limits the annual increase in taxable value for homesteaded properties to the inflation rate as determined by the state revenue commissioner and ties that calculation to the Consumer Price Index. He said the law allows local governments to opt out and also creates a new local sales tax option (the floating local option sales tax, or FLOST) that could be used to offset the limit.

White and staff stressed a key distinction: Cobb County's existing homestead float already freezes taxable value for the county general fund, so the general fund's revenue would not be affected by staying in the program. "The fire fund is where the impact is seen," White said, explaining that the fire fund is not currently covered by Cobb's homestead float and would face limits on annual taxable-value increases under HB 581. He added that the state revenue commissioner determined the inflation adjustment for 2025 is zero, meaning HB 581's limits would effectively begin in 2026.

Public comments were strongly contested. Kathy Slough (resident) urged commissioners to opt out: "I'm here to ask all of you Cobb County Commissioners to opt out of House Bill 581." Cassandra McCoury (president, Cobb Association of Realtors) urged caution with a different emphasis, arguing the measure "was designed to provide homeowners with more predictability in their property taxes" and noted the option for a sales-tax-based revenue tool. Other speakers described the ballot language as misleading, expressed concern about automatic yearly increases tied to inflation, and said the law could shift costs to renters and institutional property owners.

During questions and deliberations, ACCG representative Dante explained legal details raised by the audience: under the law as written, a local delegation cannot force a county back into HB 581 if the county opts out; however, the legislature could pass duplicate local laws or amend the statewide law later. He also noted a separate bill (House Bill 92) then under legislative consideration that—if enacted as proposed—would require a local government that opts out to run opt-out hearings annually or otherwise revert to being in the statewide program.

Commissioner Burrell (Cobb County Commissioner) said she had reviewed constituent feedback and favored opting out. After a motion and second, the board adopted the opt-out resolution; the clerk recorded the final vote as 4 yes, 0 no. The county manager and finance staff said the immediate revenue impact would be limited to the fire fund; the general fund remains protected by the county's existing homestead float. Staff also said appeal procedures and the change to the appeal freeze (taxpayers must now win an appeal to secure a freeze) apply regardless of the opt-in/opt-out decision.

The board's resolution directs staff to finalize and file the documents necessary to record Cobb County's formal opt-out. Commissioners and staff said they will continue public outreach to clarify the law's effects for homeowners, renters and municipal partners.

Ending note: Commissioners and several speakers encouraged residents concerned about the changes or possible future amendments to contact their state legislators; staff cautioned that HB 92 and other legislative actions could still alter how the statewide exemption operates in coming sessions.