Clayton County officials briefed on HB 581, opt‑out deadline and revenue implications

Tax commissioner Danielle Smith and county chief appraiser Emmett George told the Clayton County Board of Commissioners on Jan. 14 that Georgia House Bill 581 is now in effect and that the county must decide by March 1 whether to opt out of the statewide floating homestead exemption.

"HB581 is in effect as of January 1, 2025," Tax Commissioner Danielle Smith told commissioners, summarizing the statute and the local decision point. She said the law requires changes to the county’s assessment notices and to wording on property tax bills; those changes will occur whether the county opts in or out.

The bill removes the prior requirement that assessment notices include an estimated dollar tax amount. Instead, Smith said, the notice will list an estimated rollback millage rate for each taxing jurisdiction such as county, school and fire districts. "That estimate of tax is now gone," she said, and the Department of Revenue has supplied required language that must appear on bills.

Chief Appraiser Emmett George told the board the notice change is likely to confuse some residents unless accompanied by explanatory material from the tax commissioner's office. He described how the new floating homestead exemption uses a base year (2024 for properties already homesteaded) and an annual inflationary cap set by the state revenue commissioner; the county will be bound by whatever inflation figure the state sets.

George and Smith provided preliminary revenue effects from related 2024 legislation, House Bill 808, which raised the personal‑property exemption threshold. George said that, based on carryover values and Department of Natural Resources boat valuations, the number of exempt accounts rose substantially and the value now exempt is roughly $35.8 million (figure provided by George). He estimated, subject to returns filed through April 1, that at current millage rates the county’s share of lost revenue from HB 808 would be about $200,000, with the fire district and local school collections also lowered (figures provided by George and noted as preliminary).

Smith emphasized a new reporting responsibility: if the final adopted millage rate a taxing authority votes in during summer is higher than the estimated rollback printed on the spring assessment notice, the governing authority must report and explain the difference to the Department of Revenue and the public. "You will have to report that to the Department of Revenue," Smith said.

Commissioners heard that an opt‑out requires a board resolution filed with the Secretary of State by March 1, 2025, and a public‑notice process that includes three hearings (one between 6 p.m. and 7 p.m. on a weekday) and a newspaper advertisement at least 30 square inches outside the legal section. Several city mayors attended the work session and were asked to coordinate their own opt‑out decisions and advertisements; Smith said each taxing jurisdiction is responsible for its advertisement and resolution.

The board and mayors discussed a related mechanism called a floating local option sales tax (often called a "FLOST") to offset revenue losses from the exemption. Smith said a FLOST would require an intergovernmental agreement and local referendum; proceeds would be routed through the county and disbursed to cities under the IGA. She said the FLOST may run up to five years and that counties and cities must all opt in to establish a shared FLOST under HB 581.

Commissioners did not vote at the meeting; staff said they will schedule public hearings and provide materials to help the board make a timely decision.

Why this matters: HB 581 changes what residents see on assessment notices, creates a new statewide homestead mechanism with a base‑year calculation and an annual inflationary cap set by the state revenue commissioner, and imposes new transparency and reporting requirements on local taxing authorities. The board’s decision to opt out or remain opted in will affect local tax notices and could change county and school‑district revenues depending on digest changes and the inflationary cap the state sets.

Sources and next steps: County staff said they will publish explanatory materials with assessment notices, coordinate public hearings and supply the board with the formal resolution language and advertisement specifications needed to opt out by the March 1 deadline if the board chooses to do so.