Jones County holds public hearing on statewide floating homestead exemption; opt-out decision pending

Jones County held a public hearing Feb. 5 on House Bill 581, the 2024 state law that created a statewide "floating" homestead exemption and new local sales-tax options, with county staff explaining how the exemption works, the local opt-out process and steps the county is taking to address uneven property assessments.

County Administrator Jason Reznor said HB 581 took effect Jan. 1 and "none of our existing exemptions are affected by HB 581," and described how a floating exemption adjusts each year instead of remaining a fixed dollar amount. He told the meeting the base year for the exemption would be the 2024 assessed value, the exemption resets when a home sells or there is a substantial property change, and the exemption "can't be transferred to another property." Reznor also said jurisdictions that opt out must pass a resolution after three advertised public hearings and submit documentation to the secretary of state by March 1.

The nut of the hearing was whether Jones County should opt out of the statewide exemption now or remain in and seek local solutions later. Commissioner Kitchen framed the question around the county's current valuation digest and the potential long-term effect of locking values in with a capped increase. "If our values are 30% low, and you're limited to going up to 2 and a half percent per year, you never get caught up," Kitchen said, urging local control of millage and tax policy.

County staff and commissioners repeatedly described two separate components of property tax calculations: assessed value and the millage rate. Reznor explained that the millage rate can be adjusted to offset changes in assessed values and noted that procedural changes in HB 581 (including notice changes and appraisal-frequency requirements) would apply regardless of the county's opt-out decision.

Several members of the public pressed the commissioners about notification and timing. Resident Donna Pierce asked how long the countywide revaluation would take; the commission said funding for a full county reevaluation was approved at a recent meeting and that the process "is probably gonna take the better part of a year or more" before the results are in and submitted to the state for equalization. Residents also raised concerns about seniors and households on fixed incomes and whether they had been adequately notified of the law and of the hearings.

Commissioners and staff said the state had flagged Jones County's digest as substantially out of alignment with market values: Reznor and speakers cited a figure that roughly "60% or so" of parcels are undervalued, and staff noted the chief appraiser is required by the law to ensure every parcel is appraised at least once every three years. A county official described a plan to bring in an appraisal firm to revalue all parcels (the county has about 16,000 parcels, as referenced at the hearing) and then return the digest to the state for equalization.

No formal opt-out resolution was adopted during the hearing. Reznor said the board planned a called meeting after the hearing to consider a formal resolution to opt out; he reminded attendees that if a jurisdiction does not complete the opt-out process by March 1, the ability to opt out ends. The commissioners made and approved routine procedural motions during the session (approval of the meeting agenda and, later, a motion to adjourn) but did not vote on an opt-out resolution at this hearing.

Public comments also ranged to broader county finance questions: speakers noted the county's roughly $30 million annual budget, the effect of any change on businesses and renters (which do not receive homestead exemptions), and the commission's long-running practice of rolling back the millage rate to attempt to hold tax bills steady while adjusting assessed values.

The hearing closed with commissioners saying they would hold a called meeting to decide whether to file a formal opt-out resolution with the state before the March 1 deadline and that the county's planned reevaluation would inform any later action. Residents were encouraged to follow notices posted in the newspaper and on the county website for next steps and the date of the called meeting.