Spalding County holds first of three public hearings on stateHouse Bill 581 and floating homestead exemption

The Spalding County Board of Commissioners on Feb. 12 opened the first of three required public hearings on House Bill 581, the statewide "floating" homestead exemption passed by the Georgia legislature and placed before voters with an opt-out provision. County Manager Dr. Ledbetter outlined technical effects of the bill and said the county's financial model shows that, as written, the law could shrink Spalding's taxable digest and require higher millage rates to maintain current services.

The matter matters because HB 581 would change how homestead exemptions are calculated and allow counties that "opt in" to link the exemption to an inflation index while also making counties eligible to seek a floating local option sales tax (FLOST) to offset property tax revenue losses. Spalding is holding three public hearings (Feb. 12 at 10 a.m., Feb. 12 at 6 p.m., and the final on Monday at 6 p.m.) before the board must complete the procedural steps required to opt out if it chooses to do so.

Dr. Donna Ledbetter, county manager, said 2024 is the base year the Department of Revenue will use for valuations under the law and that the exemption applies only to homesteaded properties, not rentals or commercial property. "The taxable value of the homesteaded property is to increase annually," Ledbetter said, explaining that the…