Clayton County holds public hearing on HB 581; officials warn fire fund revenue could fall if county stays opted in

The Clayton County Board of Commissioners held a public hearing Feb. 18 on House Bill 581 — the statewide 2024 law that creates an inflation‑tied floating homestead exemption and an associated five‑year floating local option sales tax (FLOST) — and heard repeated warnings from county officials that opting in could reduce local revenue and strain county services, particularly the fire fund.

County leaders said the board has not decided whether to opt in or opt out and is holding the hearing to take public comment required under the law. Financial advisor Ed Wall and Interim CFO Stacy Merritt presented the bill’s mechanics and projected revenue impacts; Fire Chief Sweatt described how the change could translate into reduced fire‑department staffing and equipment availability.

Why it matters: HB 581 ties the assessed value growth for homesteaded residences to inflation rather than full appraisal increases and permits a new five‑year sales tax to replace property tax revenue dollar for dollar only if local governments remain within the new homestead framework. County staff said the law took effect Jan. 1 after voters approved a related constitutional amendment in November 2024; the statute gives local governments until March to publish required notices and hold three hearings if they intend to opt out of the new regime.

Wall said HB 581 limits how much a homesteaded property’s assessed value may increase for tax purposes to the prior year’s inflation rate. Using a 3%…