County staff outlines new floating homestead exemption under House Bill 581; opt-out window, notice changes explained

County staff reviewed changes that will affect how homestead exemptions are calculated under legislation the presenter identified as House Bill 581 and explained how those changes could affect property tax notices and senior taxpayers.

The presenter told the Oconee County Board of Commissioners that House Bill 581 creates a ‘‘floating homestead exemption’’ that would limit year-to-year increases in a home's assessed value to a measure of inflation (likely the CPI), with 2024 as the base year. "It's my understanding there'll be no increase for '25," the presenter said. The presenter added that a value reset still occurs when a property is sold or when there is a substantial change to the property (for example, adding square footage or a pool).

The presenter described how local implementation interacts with state and local practice: counties were automatically placed "in" the referendum and a jurisdiction that wants to opt out must file a one-time opt-out packet with the secretary of state. The presenter said the current deadline to submit an opt-out packet is March 1 and that a bill to extend that deadline had been proposed but had not advanced. "In order to stay in, we have to do nothing. Just sit back and watch the fireworks," the presenter said, urging direction from the board on whether to begin any opt-out process.

Staff said the new law also changes the assessment-notice process. In March the county must give the tax commissioner an estimated millage rate to include on assessment notices; if the county's final adopted rate exceeds that estimate, a disclaimer could appear on tax bills. Staff also said the law changes the rules governing appeals and multi-year adjustments: the three-year appeal lock will apply only if a taxpayer wins an appeal, and taxpayers must participate in required settlement conferences to obtain fee awards or reductions.

Why it matters: staff said the changes are intended to slow rapid increases in taxable assessments that some homeowners—particularly seniors—reported after recent reassessments. The presenter cited an example from the county packet where a homeowner's assessment rose 27.6% in one year, producing a larger tax-dollar bill despite the county lowering its millage rate.

Next steps and outreach: staff said they have met with the tax commissioner and local appraisal office and have provided a sample of the exemption language that will appear on tax bills. They recommended further public outreach for seniors and said they would return with final implementation steps if the board gives direction. No formal vote or motion regarding an opt-out was recorded during the discussion.

Votes at a glance: No formal motions or votes were recorded on this agenda item during the meeting.