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Marietta council to advertise hearings to opt out of state's HB581 homestead rule
Summary
City staff told council that sticking with Marietta's existing homestead cap would save many homeowners more than the state's new CPI-limited approach; council authorized advertising three public hearings (Jan. 8, Jan. 28 and Feb. 12) required to opt out and signaled preference to keep the city's current exemption.
Marietta officials voted Sept. 19 to advertise the public hearing schedule required to opt out of Georgia's recently enacted HB581, a change to how homestead-exemption values are capped. Staff told the Finance and Investments Committee that while the state's new law freezes assessed value then allows annual increases tied to CPI (capped at 3%), Marietta's longstanding local cap (which in practice freezes the taxable base at purchase value) generally produces lower city tax bills for many homeowners.
City staff presented two illustrative examples comparing the city's cap and the HB581 method, showing an estimated difference of roughly $90'$100 in annual city taxes in one example and a projected increase under the state method across multiple years. The presentation noted some seasonal and vendor-reporting anomalies in tax collections but said the general fund remains on track to meet year-end capital allocations.
The council discussed administrative burdens associated with the state approach: if the city does not opt out it would need to compute two valuations each year for every homestead property and publish the comparisons for property owners. Staff said opting out avoids that annual duplication and, in their analysis, would be "cheaper for the homeowner" in most cases.
Councilmembers asked how other taxing authorities would be affected. Staff said the county and school tax calculations could be affected if those jurisdictions do not take similar action; the county fire fee currently sits outside the same exemption treatment. Councilors also noted that limiting the benefit to homesteads shifts tax pressure to non-homestead properties, including businesses.
To preserve the city's current method for residents while meeting statutory deadlines, the council authorized advertisement of three public hearings on the opt-out resolution and set tentative hearing dates for Jan. 8, Jan. 28 and Feb. 12, 2025, with March 1 the statutory certification deadline. Staff said they will coordinate with the school board so the district can participate in the hearing process. The motion to advertise carried on committee consent.
