Forest Park council votes to opt out of state House Bill 581 affecting property-tax assessments

Forest Park’s City Council voted at a Feb. 20 special call meeting to opt the city out of House Bill 581, a state law that changes property-tax assessment procedures and creates a new statewide homestead exemption that local governments may decline to adopt.

Chief Deputy Tax Commissioner Lisa Wood, speaking for the state tax office, told the council the bill “really does encompass 2 parts,” describing administrative changes to tax notices and appraisal cycles and a separate set of provisions that limit how much assessed-value growth a local government can tax. Wood said the law ties how much of a reassessment a jurisdiction may tax to the Consumer Price Index and gave an example: if market value rises 10% but CPI is 3%, only 3% of that increase could be taxed.

The vote followed a statutorily required public hearing in which no speakers lined up in favor of remaining opted in and one resident asked about the bill’s effect on new higher-value homes in Forest Park. Wood clarified that existing local homestead exemptions for seniors, veterans and people with disabilities would remain in place under either choice, and that opting out would preserve the city’s current approach to assessing newly constructed properties.

Under the statute as explained to the council, jurisdictions were included in the law by default when it passed during the 2024 legislative session and signed by Governor Kemp; a jurisdiction must hold three public hearings, run required advertisements and take a formal vote to opt out. Wood said the city must make a decision “per the bill that passed in February by March 1,” though she added legislators were discussing extensions and the bill had multiple pending amendments.

Councilman Akins Wells moved to opt out of House Bill 581 for the City of Forest Park; Councilwoman James seconded. The roll-call vote recorded Councilwoman James voting yes, Councilman Akins Wells voting yes and Councilmember Meares voting yes. Councilmember Gutierrez was not present. The motion carried with three recorded yes votes and one absent.

City Clerk Randy Rainey opened and closed the hearing and handled the roll call. The council closed the hearing, made the motion and adjourned the special meeting after the vote. Chief Deputy Tax Commissioner Wood remained available to answer follow-up questions and reminded the council that the legislation was still subject to change while amendments were being finalized.

The decision to opt out means Forest Park will not automatically adopt the law’s statewide homestead exemption or the law’s limits on taxing reassessment growth; the city may continue to set its local homestead provisions and assessment practices unless the state law or later amendments change procedural or substantive requirements.