Marietta holds public hearing on state HB 581; staff recommends city opt out to preserve local homestead freeze

Marietta city officials opened a public hearing on state House Bill 581 and heard public comment on whether the city should opt out of the law and keep its current homestead exemption.

City staff member Brown, who presented the bill summary, told the council that HB 581 was signed on 04/18/2024 and "applies to taxable years beginning in 2025." Brown said the law caps annual assessment increases for qualifying homeowners at the rate of inflation and that it "incorporates 3 new tax laws, and provisions" including a revision of property tax procedures and local-option sales tax limits. She recommended that Marietta opt out and continue the city’s existing homestead freeze that began in 2002.

The recommendation matters to homeowners because, according to Brown’s presentation, the city’s existing base-year homestead exemption includes a freeze that keeps the taxable value the same for eligible owners throughout their ownership while HB 581 would allow the property’s assessed value to rise annually by inflation. In Brown’s example, a home with a net taxable value of $350,000 under Marietta’s current exemption would produce a city tax bill of $657 at the city’s stated millage rate of 4.692; under HB 581’s inflation adjustment the same home’s taxable value would rise to $386,335 over five years, producing higher taxes in the example presented.

Brown also said state law requires jurisdictions to present the exemption most beneficial to taxpayers and that "Marietta's current base year homestead exemption...is in every instance better than the HB 581." She described administrative costs and changes to billing and printing the city would incur if it implemented HB 581 rather than opting out.

Speaking during the public comment portion, resident Robbie Huck said he favored opting out and asked for clarification about whether the November ballot question that approved the statewide change included a possible local sales tax. Janique Clinton said she opposed HB 581 based on her personal tax bills, saying she had experienced a roughly 40% increase and that "when I look at my tax bill, I'm not getting that floating exemption based on when I was eligible to be in the home." She urged the tax assessor’s office to audit its calculations.

City staff and council members clarified the limits of the city’s authority over school taxes. Bill (staff member) said school millage is set by the Marietta City School System’s school board, not the city, and that "the freeze that we were talking about that's been in place since 02/2002 does not relate to the school tax." The city’s portion of the tax, staff said, is subject to the local homestead freeze when homeowners file the required paperwork.

No formal council vote was taken at the hearing. Brown said this was the second of three hearings required by law and that the council will hold a final special-called meeting and take a vote on whether to opt out on February 25 at 4:45 p.m.