Decatur holds public hearing on whether to opt out of state homestead cap; no vote taken

The Decatur City Commission on a special-called meeting discussed whether to opt out of House Bill 581, a 2024 state law that creates a statewide "floating" homestead exemption that would cap annual taxable-value increases for residential homestead properties.

City Manager Ms. Arnold explained the measure’s mechanics and timeline: the law was enacted by the state legislature in 2024, approved by statewide referendum and will be implemented through an inflation index the state revenue commissioner will set. "It introduces a statewide floating homestead exemption," she said, and added that local governments have about two months to decide whether to opt out. "There’s no off ramp. There’s there’s no there’s no going back," she warned.

The public comment period drew multiple residents who urged the commission to consider how any decision would affect seniors and households on fixed incomes. Shirley Osterneck, a Decatur resident of Charter Square, said recent county reassessments have markedly increased her bill and asked whether the city’s choices would affect what residents pay. Russell Pierce told commissioners that home-value appreciation has substantially increased household property-tax burdens and asked, "why do we just how do you you justify why taxes have to grow faster than inflation?" Several speakers asked whether other senior- and income-based exemptions would be affected; Ms. Arnold replied those existing exemptions—expanded in 2024 from $25,000 to $40,000 for the city’s general homestead exemption—would remain in place.

Commissioners and staff cautioned that HB 581 applies only to residential homestead property and not to commercial or rental property, which could shift tax burdens. Commissioner Dusenberry framed the change as a redistribution, saying, "HB 581 ... shifts the tax burden, to our commercial folks and to our renters." Other commissioners warned the permanent nature of the relief could constrain future revenues, push the city closer to its millage-rate cap and complicate borrowing: restricted revenue could reduce bond ratings or raise borrowing costs for projects such as parks and recreation improvements.

Staff noted that assessed values will continue to be provided by the DeKalb County tax assessor; the city does not set those values. Ms. Arnold said the commission planned a work session with the county chief appraiser to review appraisal methodology and would take no immediate vote: "We won't make a decision without making a lot taking a lot of time to really digest what it means."

The commission encouraged residents to attend an evening work session where the chief appraiser will explain methodology and reminded the public that one more required hearing will be held at the next regular meeting. The special meeting was adjourned at 12:49 with no formal action taken.