Camden County holds public hearing on whether to opt out of stateHouse Bill 5.81 floating homestead exemption

Camden County held a public hearing during its meeting to review House Bill 5.81, the statewide floating homestead exemption, and to hear whether the county should formally opt out of the change.

Nancy Clark Gonzales, the county—s chief financial officer, told the board that the county—s existing homestead exemption is a local freeze that dates to a voter-approved measure in February 2006 (Senate Bill 496) and that it has produced substantial taxpayer savings. "This shows what it has saved the taxpayer since it went into effect," Clark Gonzales said, citing about $13,000,000 in savings over the last three years and "just over $32,000,000" in total savings since the local exemption began.

Why it matters: the new state law, House Bill 5.81, which county staff said passed in November 2024 and took effect Jan. 1, 2025, ties increases in a home's taxable value to the consumer price index rather than preserving the full freeze. Clark Gonzales illustrated the difference with an example: if a home's market value rises $10,000 and CPI is 2%, the floating exemption would allow an increase of $2,000 rather than the full $10,000.

Clark Gonzales said the floating exemption is "actually less of an exemption than what we currently have in place," and that homeowners who already receive the local homestead benefit would be granted the floating exemption automatically but would not receive a greater benefit than the existing freeze. She also clarified that when a homeowner makes improvements, the assessed value of that improvement is added to the existing frozen base year value rather than resetting the base year.

Board procedure and next steps: county staff said the board previously signaled an intent to opt out during a work session and that the county provided public-notice publication in the Tribune. The county is holding three public hearings on the topic (one last week and two on the meeting day). If the board decides to opt out following the hearings, staff must file a resolution with that option by March 1, county staff said. No formal opt-out vote or final decision was recorded during this public hearing.

Public participation: the board opened the hearing to public comment but no members of the public spoke during the recorded portion of the meeting.

Context and limits: Clark Gonzales emphasized the local homestead freeze applies to residential property only and does not cover commercial property. The statewide floating exemption similarly applies to homestead eligibility but links increases to CPI. The county—s description of past savings and projected differences compared the county—s local freeze (in effect since the 2007 tax year) with the new state mechanism; staff said all other existing exemptions remain in place.

The board did not make a final decision at this meeting; staff will proceed based on board direction after the conclusion of the scheduled public hearings and, if applicable, file the opt-out resolution by the March 1 deadline.