Clayton County school board votes to opt out of state’s HB 581 homestead cap

The Clayton County Board of Education voted unanimously to opt out of House Bill 581, the state measure that would cap year-to-year increases in taxable assessed values of homesteaded properties, after a public hearing and a financial presentation by the district finance officer.

Ramona Bivens, chief financial officer for Clayton County Public Schools, told the board that HB 581 “provides a statewide floating homestead exemption for all local governments, including school districts,” and that the measure would limit increases in assessed value for homestead properties to the annual rate of inflation. Bivens said the law would not affect non-homestead (commercial) property valuations and that existing homestead exemptions — regular, senior, disability and certain veteran and survivor exemptions — would remain in place.

Bivens framed the decision around district operations and projected revenue. She presented past-year estimates and forward-looking scenarios, stating that “had this bill been in place over the previous 7 years ... the district would have potentially lost an estimated $35,000,000 over the 6 year period,” and that under a set of assumptions the district could lose roughly $38,000,000 over five years if it did not opt out.

Bivens also said the Georgia Department of Revenue will use the Consumer Price Index for All Urban Consumers (CPI-U) to set the inflation index each January; for 2024, she reported, the department would not set an inflation rate, meaning that “the assessed value on the person's homestead from 2024 will not change…