Savannah holds public hearing on whether to opt out of state homestead exemption

The Savannah City Council on Feb. 27 held a public hearing on whether the city should opt out of the state's new homestead exemption under House Bill 581 and Official Code of Georgia §48-5-44.02, drawing residents' questions about steep increases in property tax bills.

The hearing was informational; the council did not take a formal vote during the Feb. 27 session. City officials answered questions about how property values, millage rates and differing exemptions affect homeowners' bills and offered one-on-one help to residents who wanted to review their assessments.

Rosalyn Goodine, a Savannah resident, told the council her annual tax bill rose from about $429 to $2,135 and asked why the increase was so large. "That is pretty steep," Goodine said, adding she felt she had already paid for her home. The presiding official responded that the hearing was for comment and that staff could help her after the session.

A city official identified in the hearing as the City Manager (name not provided) explained that property taxes pay for municipal services such as police, fire, water and sewer, and that increases in assessed property values raise tax bills even if the millage rate remains the same. "Our values of our property have gone up," the City Manager said, and the city has "maintained or lowered our tax rates over the last six years." The City Manager also noted the city's tax rate is "the lowest that it's been since 1987," while acknowledging that rising assessments can increase bills.

During public comment, Stephen Wood, a Savannah resident, argued in favor of the state measure and the related floating homestead exemption, saying it is intended to protect homeowners from rapidly rising taxable values. Wood said nearly three-quarters of voters statewide had chosen to opt into the state exemption and that the floating exemption would not be additive to existing local exemptions but would provide whichever exemption produced the greater benefit to a homeowner.

A speaker identified as City Manager (name not provided) and other officials described differences between the existing local exemption referenced in the hearing as the "Stevens Day" exemption and House Bill 581. According to the City Manager's explanation at the hearing, the local Stevens Day exemption freezes the county maintenance-and-operations (M&O) taxable value for county taxes so that portion does not rise with inflation; under House Bill 581, county M&O values could rise with inflation, which in Chatham County would, in many cases, make the local Stevens Day exemption more beneficial to property owners. "In Chatham County, virtually, for every property owner, Stevens Day is going to provide the most value," the City Manager said while explaining the legal and practical differences.

Several residents used the hearing to seek help understanding which exemptions apply and to request staff assistance. Melissa Carter, identified in the hearing as a city staff member, told residents she and others could walk through forms and help navigate the county tax-assessor process. The City Manager and others said staff would follow up with residents who requested more information.

Jacqueline Jones, speaking for a family member, said she had come to the hearing without enough information to determine whether her mother qualified for a homestead exemption and accepted the offer to meet with staff after the session.

The council opened the hearing for public comment and said the public comment period would remain open until 6:00 p.m. on Feb. 27. No formal motion or vote to opt out of House Bill 581 or to change local exemptions was recorded on the transcript of the hearing.

The hearing included detailed explanations from city staff about how different exemptions work alongside residents' reports of rising bills. City staff offered individualized assistance to residents seeking to verify their exemptions or to learn whether senior or other exemptions apply.