Newton County schedules public hearings on HB 581 homestead exemption after revenue briefing

Newton County commissioners on Jan. 16 agreed to schedule three public hearings on House Bill 581, the new Georgia law that creates a statewide floating homestead exemption unless local taxing jurisdictions opt out.

Attorney Aaron Myers, of the law firm Gerard and Davis, told commissioners the law gives each taxing jurisdiction — counties, cities and school boards — the individual choice to opt out, but warned the decision carries long-term budget trade-offs. “I think it would serve everyone's interest to go ahead and conduct the 3 public hearings,” Myers said, adding that hearings would help residents understand how the change could unfold over 5–10 years.

The briefings focused on two linked features of HB 581: the floating homestead exemption, which effectively freezes a homestead's taxable value with a cap on annual increases, and an optional floating local option sales tax (FLOST) that jurisdictions could use to replace lost property-tax revenue if all local taxing jurisdictions adopt the floating exemption.

Why it matters: The exemption favors long-term homeowners by capping growth of taxable home values, shifting a growing share of the tax burden over time to non-homestead property owners unless the county adjusts its millage rate or secures alternative revenue. Chief Appraiser Marty Kennard presented historical and projected scenarios showing material fiscal impacts if the exemption had been in place earlier and under modest future growth.

Kennard summarized one retrospective scenario and said, “What you're looking at is a $17,000,000 loss in revenue” for the county-only portion in that example. Her forward-looking projection (using a 6% annual market growth assumption and a 3% cap on homestead increases) estimated a county-only revenue difference of roughly $4,600,000 in one projected year and larger cumulative effects for the schools and cities.

Myers and Kennard gave commissioners three practical steps required by the statute to opt out: (1) run a legal notice in the paper and on the jurisdiction’s website at least one week before the first hearing, (2) hold three public hearings, and (3) adopt a resolution before the March 1 opt-out deadline and file it with the Secretary of State. Myers said the state Revenue Commissioner will set an inflation-adjustment factor (the law caps the homestead taxable-value increase at 3% or the chosen factor, whichever is lower).

Commissioners pressed presenters on assumptions and local impacts. Commissioner Edwards asked whether the 3% cap is a maximum; Myers replied that communities should expect the 3% cap “for the foreseeable future” because the statute ties the cap to an inflation adjustment determined by the state. Commissioner Long questioned the 6% growth assumption in the projections and said local assessor figures show slowing growth; Kennard and Myers both acknowledged projections rely on assumptions about future market behavior.

Myers also explained FLOST mechanics and interjurisdictional effects: a FLOST can be implemented only if all local taxing jurisdictions in the county have the floating homestead exemption in place. He described the FLOST as a tool to convert some property-tax burden into sales-tax revenue, noting it can be phased in fractions of a penny and that sales-tax revenue is shared differently than property tax.

No formal county opt-out vote was taken at the work session. Commissioners agreed to schedule the three required public hearings so the community can ask questions and comment before the Board would consider any resolution to opt out. At the session’s close, Commissioner Mason moved to adjourn, Commissioner Long seconded, and the board voted to adjourn.

Next steps: County staff will publish the legal notice and set dates for the three public hearings required by HB 581. The opt-out deadline under the statute is March 1; if the Board does not opt out by that date, the floating homestead exemption will apply for Newton County by default.