Paulding County school board holds required hearing on HB 581 floating homestead exemption; no decision made

The Paulding County Board of Education held a public hearing on House Bill 581 and the related constitutional amendment (HR 1022) that create a statewide "floating" homestead exemption, hearing a staff presentation and public comment but taking no formal vote on whether to opt out.

Superintendent Steve Barnett opened the hearing with a presentation explaining that the change created by HB 581 would not alter existing local homestead exemptions — including senior exemptions — but would create a single, statewide mechanism the local board can opt out of only once. "It does not impact that at all," Barnett said, referring to existing exemptions for seniors and other current homestead benefits.

Barnett and county Chief Appraiser James Stokes outlined why Paulding County could be more affected than many districts: the school district is heavily dependent on residential property (about 86% of the digest as presented) and on local revenue (about 38% of the district's general fund), while enrollment and housing growth are large. Barnett said the district serves about 32,000 students, has seen roughly 6.3% enrollment growth over five years, and uses a planning assumption of about 0.662 students per new home. He presented an example showing the average homeowner might see roughly a $60 annual difference under one scenario, and warned the statewide index used by the exemption could diverge from local conditions.

Barnett also raised fiscal concerns specific to Paulding: the district receives an equalization grant that represents roughly 7% of revenue and has relied on local funds for initiatives such as safety and security (about $12 million spent locally over the last three years). He said those local efforts could be harder to sustain if the floating exemption materially reduces the district's tax base or forces millage-rate adjustments.

During public comment, resident Howard Waller questioned whether the notice language signaled a predetermined decision and cited permit data he collected, saying Paulding issued 1,315 new residential building permits in 2024 and estimating those homes would add roughly $394.5 million in assessed value. Waller urged the board to consider how new construction revenue offsets the exemption. Waller also noted that the county — not the school system — could pursue a voter-approved local sales tax to recoup revenue, and said the newspaper notice made him believe the board had already decided to opt out.

Board members and staff clarified several technical points during the hearing: the legal notice language was prescribed and could not be altered by the board; under state law the local board cannot collect the county sales-tax option tied to the bill (E-SPLOST/other local sales taxes are within county or city authority); and the board has not yet passed any resolution to opt out. The superintendent repeated that the district has posted videos, an appendix of calculations and a prior Jan. 14 presentation on its website to help the public evaluate the potential impacts.

The hearing concluded without a vote on an opt-out resolution. The board took a procedural motion to adjourn, which carried, and announced two additional required public hearings: Jan. 30 at 8 a.m. and Feb. 4 at 6 p.m., both at the Paulding County Board of Education offices. The board will separately consider whether to adopt a resolution to opt out; no resolution was adopted at this hearing.

For records: the hearing was described by staff as one of three required by Georgia law before the board may finalize an opt-out decision; staff emphasized the decision is a one-time local choice with permanent consequences if exercised.