East Point council hears detailed briefing on House Bill 581; staff to return with revenue examples

City staff and consultants gave East Point council a detailed overview of House Bill 581 — the statewide law enacted in April 2024 that creates a statewide "floating" homestead exemption, changes property-tax appeal procedures and authorizes a new, limited-purpose local sales tax for property-tax relief.

The presentation, led by Shannon Golden and Jeff Jackson, explained how the floating homestead exempts a portion of a home's taxable value by indexing a base-year value to inflation. Jeff Jackson said the law "implements a statewide floating homestead exemption for all local governments," and described mechanics by example: a $100,000 taxable base that rises to $110,000 could be limited to a CPI-adjusted base of $102,000 so a taxpayer would pay taxes on $102,000 rather than $110,000.

Council members pressed staff for local revenue estimates, timing and implementation details. Staff said the floating homestead is automatic for homeowners already receiving a homestead exemption and that local governments may opt out only after a public-notice process and three hearings; a resolution must be filed with the Secretary of State by March 1, 2025 (staff said they were using February 28 as the practical last day to meet the deadline). Staff also said the city must certify an estimated rollback rate to Fulton County by late January–February so the county can include it on assessment notices.

Why it matters: House Bill 581 changes how residential taxable value can grow, ties that growth to the Consumer Price Index as set by the state revenue commissioner, and creates an optional sales-tax tool (FLOS) intended to offset property-tax reductions. For East Point, the law could reduce residential revenue growth while leaving commercial property and non‑homesteaded property to continue being taxed at market value, shifting the mix of who pays for municipal services.

Details from the briefing and council questions: - Components: floating homestead exemption (indexed to inflation), procedural changes to appeal and assessment schedules, and a floating local option sales tax (FLOS) for property-tax relief. - Opt-out: Local governments must advertise intent, hold three public hearings and file a resolution by March 1, 2025; the decision is permanent for that government unless changed by local act. Staff said counties, cities and school boards decide independently. - Timing: The law took effect Jan. 1, 2025. Staff said the city's actions to certify an estimated rollback rate to Fulton County could be submitted as early as Jan. 27, 2025 but could move up to Feb. 28 to meet procedural deadlines. - FLOS eligibility: To levy the new local sales tax, both the county and all cities in the county that levy property tax must have floating homestead exemptions in effect. Staff said East Point is not eligible to receive FLOS proceeds because the law excludes cities that levy the MOST (municipal-option sales tax) used for water/sewer projects; East Point appears on the list of excluded cities in the staff presentation. - Appeal/assessment changes: The law modifies when taxpayers receive a three-year lock after a successful appeal and requires more frequent partial reappraisals at the county level. Staff emphasized these provisions operate through Fulton County processes.

Next steps: Council asked staff to provide numerical examples of revenue impact (on single properties and on city tax collections), to present those at the January 13 work session if possible and to return with a recommended timeline for the required public notices and hearings. Staff also recommended coordinating with regional municipal associations and the city’s state legislative delegation. No formal vote or opt-out decision was taken at the Jan. 6 meeting.