Savannah–Chatham County holds Feb. 6 hearing on Georgia House Bill 581; vote set for Feb. 19

Savannah–Chatham County held a public hearing Feb. 6 on Georgia House Bill 581 (HB 581), the state’s property tax reform law that creates a statewide floating homestead exemption; county staff reviewed how the law would compare with the county’s long‑standing Stevens Day Homestead Exemption and said the county commission will vote on a resolution regarding the matter on Feb. 19.

Lamedes Holmes, controller in the division of finance, told the hearing that HB 581 was enacted in response to concerns about rising property values and property taxes, and that the law was signed April 18, 2024 and presented to voters Nov. 5, 2024. Holmes said the bill establishes a statewide floating exemption, offers an optional local sales-tax offset available via local referendum, and does not eliminate existing homestead exemptions that jurisdictions already have. "House bill 5 81 does not override existing homestead exemptions for any jurisdiction, but it may override existing floating, base year, and frozen exemptions if the House Bill 5 81 exemption provides a greater benefit to the taxpayer," Holmes said.

Holmes explained other features of HB 581 as presented: the exemption is not portable to a new owner; substantial changes to a property will change the adjusted base year value; the state is expected to use a consumer price index methodology similar to prior local frameworks; and local governments cannot opt in or rejoin at a later date once they choose to opt out. Holmes also noted HB 581 would cover some properties larger than 5 acres and that the law is expected to use a CPI calculation that includes urban areas.

The presentation compared HB 581 with the Stevens Day Homestead Exemption, a Chatham County statute enacted in 1998 that freezes a primary residence’s assessed value at its purchase price (with limited annual adjustments) to limit sudden property tax increases. Holmes said Stevens Day has been amended and litigated over 25 years and remains, in Chatham County’s view, the county’s most generous homestead exemption. Holmes said the county’s analysis models a scenario in which a current homeowner using HB 581’s first base year (tax year 2024) would, over a 10‑year horizon and using the presented CPI assumptions, pay about $9,574 more in total taxes than under the Stevens Day calculation in the example shown.

Holmes also warned that opting into HB 581 could impose a substantial administrative burden on county staff: preparing the HB 581 calculations would require considerable time and additional work, complicating exemption administration, especially given uncertainty about future state amendments. "We believe this is why every municipality in Chatham County is choosing to opt out of House Bill 5 81," Holmes said.

During public comment, Carolyn Hoops, a Savannah resident, said she supports retaining the Stevens Day exemption because it protects older homeowners. "I love the Stevens Day exemption. I moved here 8 years ago and was absolutely surprised. For people that are older buying homes, they're much more comfortable when their tax is not accelerating extensively," Hoops said. She also recommended the county Tax Commissioner's "tax university" classes, which include sessions on homestead exemptions and reading tax bills.

Holmes said the county will hold two more public hearings: a second hearing at this location at 6 p.m. (the presenter indicated another hearing the same evening) and a third hearing scheduled for Feb. 10 at 6 p.m., and that the commission’s vote on the resolution is scheduled for Feb. 19.

The hearing provided information and modeling but did not include a vote; the commission is scheduled to consider a resolution on Feb. 19.