Forest Park holds public hearing on HB 581 homestead exemption; no vote taken

Forest Park held a public hearing Feb. 20 on House Bill 581, a 2024 state law that creates a statewide “floating” homestead exemption tied to the Consumer Price Index and allows local governments the option to opt out; the city did not vote at the noon session and will hold a third and final public hearing at 6 p.m., when a quorum will be required for any official vote.

The hearing focused on how HB 581 would limit the taxable portion of annual assessment increases by using the prior year’s CPI. Attorney Matricardi, who presented the city’s summary materials, described the mechanism with an example: if a home’s assessed value rose from $100,000 to $110,000 but inflation (CPI) was 3%, the taxable value under HB 581 would be limited to $103,000 rather than $110,000. Tax Commissioner Smith and Deputy Lisa Wood answered residents’ questions about mechanics and scope of the change.

Nut graf: The choice before Forest Park is whether to remain “in” under HB 581 — which would apply the CPI cap on taxable assessment growth but place that control at the state level — or to opt out and leave local homestead and assessment rules unchanged. City officials said the ordinance requires three public hearings before the city can take a vote; this session was the second of those hearings and no final action was taken.

City officials and staff emphasized that HB 581 does not remove existing local homestead exemptions. "They're just limiting how much we can tax you," said Lisa Wood, chief deputy, in response to a resident's concern about losing the current exemption. Attorney Matricardi repeatedly told the audience that the bill would not eliminate a homeowner’s base homestead exemption but would restrict the taxable portion of any value increase to the CPI for the prior year.

During the hearing, officials noted related developments in Clayton County and in the State Legislature. The tax commissioner reported that the Clayton County board voted 3–2 to opt out earlier that day; Matricardi said two cities in the county also have already opted out, which would make the bill’s proposed local option sales tax (a separate provision of HB 581) unavailable for jurisdictions where not all municipalities and the county remain in. City staff and the tax commissioner also said legislators have proposed HB 92, a separate measure that might extend opt-out deadlines; the proposed dates mentioned during the hearing included March 1 for Forest Park's local decision and a possible later date of March 31, 2025, in various drafts of HB 92.

Resident Dawn Thomas, who said she has owned a home in Forest Park for about 30 years, told the council she was uncertain about the legislation’s mechanics and urged elected officials to act in residents’ interest: "I don't totally grasp what is being proposed... I would just ask the city council to do what they feel is in the best interest of the constituents." City staff offered to review her property card after the meeting to illustrate how the change might affect her specific bill.

Councilman Gutierrez said he favors local control and was uncomfortable ceding authority to the state: "I think the elected officials that live here in our city will have the best interest for our people rather than the state," he said, adding that Georgia's diversity means one statewide solution may not fit every county or city.

Officials discussed options that remain at the local and county level. Tax Commissioner Smith and staff said the county is also exploring local measures to provide property tax relief for seniors, including a potential additional floating homestead exemption targeted at older residents; those proposals were described as preliminary and not final. Staff reiterated that if Forest Park opts out, "everything remains the same as it is right now," and local homestead exemptions would be unaffected unless the City Council later adopts changes.

The council closed the noon public hearing without taking a vote. City staff reminded attendees that a third and final public hearing is scheduled for 6 p.m. the same day; a quorum will be required for the council to cast an official vote on whether to opt out of HB 581. The council did not indicate a date when it would publish any formal ordinance or ballot language should it choose local legislation instead of remaining under the state provision.

Ending: City officials said they will distribute additional materials and that staff and the tax commissioner's office will be available to answer residents’ questions before the evening hearing. The record from this session and the materials presented will be part of the public record for the final hearing.