Villa Rica staff outlines timeline, trade‑offs of Georgia’s House Bill 581; council plans public hearings before March deadline

Villa Rica interim city manager Diana DeSanto told the council at a work session that House Bill 581, passed by the Georgia General Assembly in 2024 and signed by Gov. Brian Kemp on April 18, 2024, creates a statewide “floating” homestead exemption and a new local sales tax option intended to offset property‑tax reductions.

DeSanto said the floating homestead exemption would limit how much a home’s taxable value can rise in any year by tying the allowed increase to an inflation measure set by the state revenue commissioner. “Homeowners that have already granted a homestead will receive this exemption automatically if we choose not to opt out,” she said, explaining the exemption applies to local governments that accept it.

The bill also authorizes a new local option called a FLOST (floating local option sales tax). If a local governing authority keeps the floating homestead exemption in effect, the jurisdiction may seek voter approval for up to 1 percentage point of sales tax to replace property‑tax revenue lost to the exemption. DeSanto said the FLOST is a separate referendum voters must approve; if a jurisdiction does not get the referendum vote it will not receive the sales‑tax proceeds.

DeSanto summarized two timing and process constraints for Villa Rica: (1) the city must complete a formal opt‑out process and…