Augusta public hearing outlines how House Bill 581 would shift property tax burden, introduces possible half‑cent sales tax

Augusta City officials and residents met at a public hearing in the Municipal Building chambers to review House Bill 581, the state measure that creates a "floating" homestead exemption and an option for a local floating sales tax if a local governing body remains "in." The governing body has not decided whether to opt in or opt out; that decision must be made by March 1 under the law, officials said.

The city's chief appraiser, Scott Rountree, described the floating homestead as an assessment cap tied to the prior year's consumer price index. "The floating homestead works by increasing the value of your homestead exemption to offset inflation based on the prior year's consumer price index," Rountree said, noting that the CPI for 2024 was 2.9 percent. He emphasized, "This is not a tax cap. This is an assessment cap." Rountree said the new exemption would be added on top of existing homestead exemptions and would reset when a property is sold or when a substantial change is made to the property.

Interim Finance Director Tim…