Decatur holds public hearings on House Bill 581 opt‑out; residents split on voter intent and equity

The City of Decatur opened a second public hearing on House Bill 581, the statewide floating homestead exemption, and heard more than an hour of public comment and commissioner deliberation on Jan. 21.

City Manager Andrea Arnold summarized the statute and the opt‑out timetable, telling the commission the law caps annual taxable‑value growth for owner‑occupied homesteads to the rate of inflation as determined by the state revenue commissioner. Arnold also emphasized that the school system will make an independent decision and that cities that do not act are automatically opted in.

Donovan McMurray, a first‑time homeowner, told commissioners he opposed opting out and argued the exemption is a blunt tool that “would subsidize the wealthiest members of our community.” He said he supports higher property taxes to preserve public amenities and services.

Other residents urged the opposite. Mary Kowalski said the statewide referendum passed statewide in November and urged the commission to honor voter intent locally: "I urge you to support the will of the voters," she said. Sheree Long, who referenced Texas’ long‑running property‑tax cap experience, said elected officials should not override the public vote.

Commissioners debated equity and fiscal consequences. Commissioner George Dusenberry warned HB 581 could create wide disparities between long‑standing homeowners and new buyers — and shift more of the tax burden to commercial property and renters. Mayor Pro Tem Tony Powers called the appraisal process opaque and said Decatur’s millage‑cap and independent school system make the city particularly exposed to an inflexible, permanent change.

Commissioner Kelly Walsh stressed the city needs a tax policy that is "sustainable, flexible, and equitable" and warned reduced homeowner turnover could worsen inventory constraints and affordability. Commissioner Lisa Meyer highlighted the need to preserve city services and urged staff to quantify distributional impacts before a decision.

Mayor Patty Garrett reminded residents that the five elected commissioners will decide whether Decatur opts out and reiterated the commission’s multi‑meeting outreach plan: the city has held other hearings and will hold several more (including in‑person options) before any final action.

No formal opt‑out decision was taken at the Jan. 21 session; commissioners said they will continue the public‑engagement process and analytic work required by the compressed statutory timetable.