Villa Rica council takes no action on HB 581 floating homestead exemption after public hearing

The Villa Rica City Council on Feb. 11 conducted a third public hearing on House Bill 581 — the statewide floating homestead exemption — and took no motion to opt out, meaning the city remains opted in under the law.

The hearing drew several residents who said the new exemption and recent property actions were not being explained clearly to neighborhoods inside the city’s tax allocation district. Interim Deputy City Manager/CFO Miss Hallman described the mechanics of the law, and Attorney Drummond explained the council’s procedural choice: if no motion to opt out is made, the city is automatically opted in.

Miss Hallman said the city’s process for the HB 581 decision followed state timelines and advertising requirements and described the mechanics of the floating homestead: when assessors increase a home’s assessed value, the exemption ‘‘floats’’ up by the state-determined inflation adjustment so that a homeowner’s taxable base increases only by that inflation figure rather than full assessed-value growth. She also told the council staff’s recommendation followed the opt-out process and warned that adopting the floating exemption would place additional constraints on local revenue-raising mechanisms.

In public comment, multiple Ward 1 residents urged council members to consider local impacts. Christie Chastain, a city resident, urged the council to "take no action on this item" and questioned local panic about the change. Pamela White and Alita (Dodds) Farmer said residents in parts of Ward 1 had been added to a tax allocation district without clear notice and pressed for more direct outreach and detail about how HB 581 would interact with the TAD. Amy McCoy and others said they wanted assessors and the tax commissioner to brief the community so residents could understand direct impacts on their bills.

Attorney Drummond clarified the council’s procedural options: "If there's no motion to adopt a resolution opting out, then you're automatically in," he said. After allowing public comment and asking for a motion, the mayor stated there was no motion to opt out "which means the council has taken no action, which means we are opted in." That opt-in status will remain unless the council later adopts a resolution to opt out and files it with the Secretary of State by the March 1 deadline that Miss Hallman noted is part of the statutory timetable.

The council and staff repeatedly told residents that the floating homestead affects city homestead property tax assessments only; other homestead provisions administered by the county (including Carroll and Douglas counties’ prior freeze-type homestead exemptions) remain separate and are administered by the county tax commissioner. Staff also encouraged homeowners to file for existing homestead exemptions at the county tax commissioner's office if they had not done so.

Next steps: The council left the matter without a vote, meaning the city remains subject to the floating homestead exemption under HB 581. Several residents asked the city to provide more targeted outreach explaining TAD inclusion, assessor timelines, and how the floating exemption would operate in practice for properties in Ward 1; staff said they would continue to provide information and that county offices remain the point of application for individual homestead filings.

Ending — Administrative context: Miss Hallman and city staff emphasized the March 1 process deadline for any local resolution to opt out and said the city must follow the advertising and public hearing steps prescribed in the statute before taking such a vote. Attorney Drummond and staff reiterated that a local delegation to the General Assembly could later pursue a local act, but that is a separate legislative avenue beyond the council’s immediate March 1 decision.