Stonecrest council votes 3-2 to opt out of stateHB 581 homestead exemption

The Stonecrest City Council voted 3 to 2 on Feb. 24 to opt out of the city'portion of House Bill 581, the statewide "floating" homestead exemption that ties homestead assessment increases to inflation and creates a new countywide sales-tax mechanism intended to offset reduced property-tax revenue.

The vote followed a third public hearing in which Deputy City Manager Michael McCord and financial adviser Ed Wolf presented examples showing that, under the bill as written, a typical Stonecrest homeowner would see only modest near-term savings (about $2 on a $250,000 home in the presenters' example) while the city would give up a degree of local control over exemptions and future tax policy. "Most of your tax bill is not the city''it's the county and the school board," Ed Wolf said during the presentation, noting that Stonecrest's millage is 1.257 mills and that school and county levies account for most of residents' property-tax bills.

Why it matters: Council members and several residents said the modest immediate savings for homeowners did not justify surrendering local authority to adjust exemptions and to manage trade-offs between tax rates and services. Mayor Pro Tem George Turner framed the decision as one about local control, saying the council must be able to set exemptions and trade those choices against services the city provides.

What the presentations said: McCord and Wolf walked the council and public through a sample tax bill and the mechanics of HB 581. Their examples assumed an assessed-value increase greater than inflation (10% versus a 3% inflation cap used in the bill) to show the difference. Under several scenarios presented, a $250,000 home would save roughly $2 a year under HB 581 if the city's current millage remained unchanged; the savings would be larger only if Stonecrest also assumed additional services (for example, taking over police services) and raised its millage to cover those costs.

Wolf also explained interactions with county revenue mechanisms that HB 581 would affect, including a county-level homestead-option sales tax (described in the presentation as an "eHOST"/FLOST arrangement). He warned that if some cities opt out in DeKalb County, the countywide sales-tax option to offset property-tax decreases may not be available, and that the bill contained drafting complexities and unintended consequences for county-level freezes and elections.

Public testimony: Dozens of residents and emailed comments were read. Some speakers urged the council to opt out to keep local control over exemptions and future budgets. Faye Coalfield, a Stonecrest resident, said she supported opting out and added, "You cannot empower a community when that community does not have any say in what happens with their tax dollars." Several residents and two emailed comments urged the council to remain opted in, saying the homestead exemption helped homeowners who are already struggling with higher costs.

Council debate and rationale: Council members who voted to opt out framed the choice as preserving the city's ability to balance services and revenue locally. Councilman Terry Fye said the city could design its own targeted exemptions later and that the state-level law imposed a 50-year commitment that would limit flexibility. Councilwoman Tammy Grimes, who moved the opt-out motion, stressed the need to protect local decision-making and seniors. Members who voted against the motion emphasized the immediate tax relief for homeowners and the uncertainty of longer-term impacts.

Votes at a glance: The resolution to opt out passed 3-2. The meeting record shows the council later approved routine agenda items and minutes by unanimous votes.

What's next: With Stonecrest's vote to opt out complete, the city will not implement the HB 581 exemption for its city portion. The decision does not change county or school-board actions; residents' total tax bills will still be affected by separate votes by DeKalb County and the DeKalb County School District.

Ending note: Council members urged residents to attend the city's April public hearings on the city millage and to review individual tax statements and exemptions with the tax commissioner if they have questions.