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City of Atlanta announces intent to opt out of statewide homestead exemption; officials plan outreach
Summary
City finance staff said Atlanta will not adopt the statewide homestead-exemption formula in House Bill 581, keeping a local 2.6% cap. City officials and residents used a public hearing to press for clearer outreach and for county and school district action on senior and school-tax concerns.
The City of Atlanta announced it will opt out of the statewide homestead-exemption formula authorized in House Bill 581, city finance staff said at a council-sponsored public hearing.
Mohammed Bala, chief financial officer for the City of Atlanta, told attendees that "the city is announcing our decision to opt out of the statewide homestead exemption program." He said the city already maintains a local, floating exemption implemented in 2019 that limits annual assessed-value increases on homesteads to 2.6 percent.
The decision matters because HB 581 would otherwise let local governments use a statewide formula tied to the consumer price index (CPI) to limit increases in assessed value. "If you looked at the last 4 years of CPI, those have all been over 2.6%," Bala said, explaining the city's preference for the lower, fixed cap and arguing it helps the city project revenue more predictably.
Why it matters: Residents at the hearing said they remain worried about the overall property-tax burden, especially school taxes levied by Atlanta Public Schools and Fulton County. Mary Anne Demmons, a retired teacher and Fulton County resident, said the ballot language and program descriptions are "very confusing, very unclear about what it means," and she and other speakers said seniors and long-time homeowners feel at risk of being priced out by rising assessments and school levies.
City staff and a council representative said the opt-out announcement is one step in a process that requires three public hearings under state rules. The finance office said it will work with the mayor's office and council to distribute a simplified fact sheet and a public-awareness campaign in the coming weeks; staff said they will provide assistance for residents who lack internet access or who need in-person help to sign up.
Clarifications from the hearing: - The City of Atlanta's exemption is a flat 2.6% cap on annual increases to homestead assessed value; that cap comes from a city policy adopted in 2019 and is separate from county-administered exemptions. (Source: Mohammed Bala, CFO.) - The city does not appraise or collect property taxes; Fulton County handles assessments and collections. City officials said they will coordinate outreach with Fulton County but that appeals of assessed value must go through the county. (City representative.) - The city said the exemption it is promoting is available to all homeowners ("this is not age and this is not income"), and can be used in addition to any applicable Fulton County or state exemptions. City staff said residents who sign up before April 1 will be able to lock in the 2.6% cap going forward. (City representative.) - City officials noted the general fund levy has remained near 7.85 percent since the 2019 policy, with a single 0.67 percentage point increase in 2023 tied to a change in how some solid-waste services were funded.
Public commenters sought broader action on school tax rates and senior exemptions. Marjorie McLeod asked how seniors can qualify for school-tax exemptions in neighboring jurisdictions, and multiple speakers said they want the city to press Fulton County and the Atlanta Board of Education for clearer senior relief. Several commenters also said the county website is difficult to navigate and asked the city to provide one-page instructions and direct assistance.
No council vote or final legislative action on HB 581 was recorded at this hearing. The city described the announcement as the administrative step to comply with state procedures that require three public hearings before a jurisdiction may opt out.
A council representative said the administration and council members will push out simplified materials and use council communications to reach residents. The finance office said the final public hearing on the opt-out process will be held at 6 p.m. the same day and encouraged attendees to provide phone or email contact information so the city can follow up with assistance.
The public hearing was declared closed after scheduled speakers finished their remarks.
