Spalding County commissioners vote unanimously to opt out of House Bill 581

Spalding County commissioners voted 5-0 on Feb. 17 to opt out of House Bill 581, a new Georgia law that creates a statewide floating homestead exemption and an associated floating local option sales tax (FLOST).

County Manager Steve Ledbetter told the board and members of the public that HB 581 "is an exemption. It is not a property valuation decrease," and that the law sets a 2024 base year for exemption calculations and allows future increases tied to a consumer-price index rather than to the full change in assessed market value.

The decision followed a combined series of county presentations and a public hearing that drew more than twenty speakers, many of whom said they supported the ballot measure that passed across the state and in Spalding County in November but were unsure how the local implementation would affect county services and tax rates.

Why it matters: The county's finance staff and elected commissioners warned that HB 581, as written, would reduce the county's net digest and shift tax burden and fiscal pressure onto the millage rate (the property tax rate). Commissioner James Dutton explained the county's fiscal math in depth, saying the county needs roughly $3 million a year merely to maintain current service levels and that HB 581, with expected CPI limits on taxable value growth, would reduce property tax revenue enough that the county would have to raise millage rates year after year unless other revenue or growth offsets were secured.

Key points from staff and speakers

- County officials said HB 581 sets a base year (2024) for homestead exemptions and that the exemption "floats" against that base; the exemption is a subtraction from the taxable value, not a change to assessed market value. County staff noted the law also allows a local referendum on a FLOST that could add one cent in sales tax to offset some lost property tax revenue, but the FLOST collections would begin only after the referendum and therefore would not prevent short-term millage increases.

- Dutton said the county appears to need about $3 million more per year to hold services steady; he and other commissioners warned that HB 581 in its current form would likely force repeated increases to the millage rate if the county opted in.

- Several residents who opposed the county opting out urged commissioners to respect the November vote in which a majority of Spalding County voters supported the constitutional amendment that allowed HB 581's mechanics (one speaker said the county vote was "over 60%" in favor). Supporters argued the measure would cap dramatic assessment jumps and provide more predictable property tax changes.

- State representatives Beth Camp and Karen Matjak attended and answered questions. Rep. Camp, who said she helped craft HB 581, characterized the law as increasing transparency and tying increases to an inflation measure: "If your taxes go up, it's because your millage went up, because your assessments would have a little more stability," she said. She added that voters statewide supported the constitutional change and that counties must weigh how to implement it.

Public testimony

Dozens of residents spoke in the public hearing. Supporters described steep assessment increases in recent years and urged the board to honor the will of county voters; opponents and some commissioners argued the local fiscal modeling does not show taxpayer savings without other offsets such as expanded commercial development or a local sales-tax solution.

Vote and immediate effect

A motion to opt out of HB 581 was made on the record and seconded; the board voted 5-0 to opt out. The vote means Spalding County will not adopt the floating homestead exemption nor place the FLOST referendum on the November ballot for this county at this time. County staff and commissioners repeatedly emphasized that current homestead exemptions remain in place regardless of the county's action on HB 581.

What commissioners asked next

Several commissioners and staff recommended follow-up work: a workshop to examine alternative local measures (including a special local-option sales tax or SPLOST-like hybrid), a reassessment of commercial parcels, and continued engagement with state legislative staff to seek clarifications or legislative changes before any future opt-in decision.

Ending note

The board's vote to opt out is effective from the time recorded in the Feb. 17 meeting minutes. Commissioners and county staff said they will continue to analyze the law's long-term implications and consider locally tailored revenue or cost solutions in upcoming budget workshops.