Clayton County holds third public hearing on House Bill 5 81 as officials weigh opt-in deadline and budget tradeoffs

At a Feb. 21 Clayton County Board of Commissioners meeting, the county held a third public hearing on House Bill 5 81, the recent state law that creates a floating, inflation-tied homestead exemption and authorizes a new temporary local-option sales tax option. Financial advisor Ed Wall told the board, “House bill 5 81, This is our third and final public hearing.”

The bill would let counties opt into a floating homestead exemption that limits how much a homesteaded residence—for tax purposes—can be revalued each year by capping the assessment increase to inflation. If a county remains opted in it would also have the option, together with all cities in the county, to place a floating local option sales tax (FLOS) on the ballot for up to 1 percent over a five-year term. County staff and outside advisers urged commissioners to weigh homeowner savings against reduced future county revenue.

Why it matters: The commissioners must decide whether to opt out and submit a resolution to the secretary of state before March. County staff and the county's financial advisers presented numeric examples…