Cobb County holds second public hearing on House Bill 581 homestead cap and possible opt-out

Cobb County held a second public hearing Feb. 11 on whether to opt out of House Bill 581, the new state law that creates a statewide homestead float designed to limit the taxable-value increase for homesteaded properties to the inflationary rate set annually by the state revenue commissioner.

Chief Financial Officer staff explained the law and how it would apply in Cobb: the law, effective Jan. 1, 2025, authorizes a statewide homestead float that caps increases to the taxable values of homesteads according to a percentage tied to the consumer price index as provided by the revenue commissioner. County staff told the board the change would effectively begin limiting increases in 2026, while taxable values for 2025 would carry forward at 2024 levels. Staff also said the county’s general fund existing homestead freeze would not be affected; however, because the county’s fire fund currently does not have an existing homestead float, that fund could be subject to the statewide cap if the county remains in the program.

Public comment and concerns: A number of residents urged the board to opt out. Christie Minor told the board, “Please opt out of 5 81.” Resident Lee Ramkin warned about sales-tax offsets and said, “A 1¢ increase is a 17% increase in sales tax. A 3p increase in sales tax is a 50% increase in sales tax. None of us can afford a 50% increase in sales tax.” Other speakers — Dondra Roberts, Craig Harfoot, Christine Rosman and others — also urged the county to retain local control and opt out.

Board and staff clarifications: Commissioners asked staff to clarify how House Bill 581 interacts with local sales-tax options described in state law: FLOST (floating local option sales tax), LOST (local option sales tax) and HOST (homestead option sales tax). Staff explained that FLOST is the new option created under House Bill 581 and that LOST and HOST are existing options; all of these require voter approval before a sales-tax levy could be imposed. Staff also explained the county has three available sales-tax “slots,” two of which are already used, leaving one available for an additional approved local tax if voters authorize it.

Next steps and schedule: Commissioners said they will hold a final public hearing and then take a vote in the coming weeks to meet the statutory opt-out timeline. The board scheduled one more public hearing at the board’s night meeting on Tuesday, Feb. 25, 2025, at 7 p.m., and staff emphasized the need to meet the March 1 statutory deadline if the board votes to opt out.

No formal opt-out vote was taken at the Feb. 11 meeting; the public hearing was the second in a required series and the board indicated it will consider a resolution after the final hearing.