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Forest Park holds first public hearing on whether to opt out of state's House Bill 581
Summary
The Forest Park City Council heard an overview of House Bill 581 and held the first of three required public hearings on whether the city should opt out of the bill's floating homestead exemption and related local-option sales tax provisions.
The Forest Park City Council held the first of three public hearings on Feb. 17, 2025, to consider whether the city should opt out of House Bill 581, a state law enacted in 2024 that creates a floating homestead exemption tied to inflation and a floating local-option sales tax (FLOST).
Tax Commissioner Danielle Smith, who addressed the council, said plainly, "HB 581 does not remove your current homestead exemption." She explained the law creates an additional, "floating" exemption that would be in addition to any existing local homestead exemption unless local governments opt out by the March 1, 2025, deadline.
Why it matters: HB 581 changes how increases in the taxable portion of residential property are calculated; it limits how much of assessed growth can be taxed in a year to the Consumer Price Index (CPI) rather than the full assessed market increase. For Forest Park, that interacts with the city's locally established $150,000 homestead exemption and Clayton County's revenue mix.
Details of the discussion: Smith and City Manager Ricky Clark both told the council that the bill is already law and that the March 1 opt-out deadline remains in effect unless the state amends that timeline. Clark said the city's existing homestead exemption of $150,000 is among the highest in the county and that, because of that exemption, "the majority of Forest Park residents will not actually be impacted by this" in the short term. Smith cautioned that exemptions have fiscal costs, saying simply, "exemptions cost," and urging the council to "count the cost" before acting.
Council members and staff discussed the two-step effect of the bill: it limits how much of annual assessed growth is taxable (the CPI cap) and, separately, would create a county-level floating sales tax (FLOST) only if all county municipalities and the county itself remain in. Council members and staff clarified that money returned by a FLOST would go back to homeowners rather than directly to city coffers.
Next steps: The council scheduled two additional public hearings, on Feb. 20 at noon and Feb. 20 at 6 p.m.; if the council votes to opt out after those hearings, staff said the action and any required notices will follow. No opt-out vote was taken during the Feb. 17 meeting.
Public comment: Several residents attended and asked clarifying questions about how homeowners would be affected; some urged the council to opt out. Speakers said the bill is complicated and requested clearer, plain-language explanations in future outreach.
Background: House Bill 581 was enacted during the 2024 session and signed by the governor. The law is statewide; several other local governments in the region are also considering whether to opt out or to adopt local alternatives to preserve local control over exemptions.
What the council recorded: The Feb. 17 session served as the first required public hearing; the council did not vote on an opt-out at that time and reiterated the March 1, 2025 opt-out timeline and the two follow-up public hearings on Feb. 20.
Ending: The council encouraged residents with questions about their individual tax status to contact the county tax commissioner and signaled it would provide additional explanatory materials ahead of the next hearings.
