Fayette County finance officer warns HB 581’s floating homestead could push millage rates higher

Finance Officer Sheryl Weinmann told the Fayette County Board of Commissioners on Jan. 9 that House Bill 581 establishes a statewide floating homestead exemption that adjusts a home’s taxable value annually by a Consumer Price Index (CPI) inflation factor rather than freezing it.

Weinmann said the change means property tax bills in 2025 will be calculated on 2024 taxable values unless a homeowner receives a different base year after a sale, and that the CPI adjustment—which the Department of Revenue will publish—will determine future taxable-value growth. She emphasized this mechanism is not a value freeze and warned it will likely put upward pressure on local millage rates over time, because residential taxable values would grow more slowly than market values.

County Administrator Steve Rapson and several commissioners raised concerns about budgetary impacts to public safety, schools and other services. Commissioner Charles D. Rousseau said the examples in the presentation amounted to roughly a "$40 savings" for some homeowners and argued that such savings could come at the expense of school funding and public‑safety budgets. Vice Chairman Edward Gibbons called the idea of replacing property revenue with a sales tax “absolutely regressive.”

Weinmann walked the board through procedural details the county must meet if it wishes to opt out of the floating exemption: the jurisdiction must advertise and hold three public hearings between Jan. 1 and Feb. 28, then submit a resolution to the Secretary of State by March 1; an opt-out is irrevocable, though a local delegation could pursue a separate local floating homestead by local act. She also explained that the FLOST option (a floating local option sales tax) requires the county and all cities in the county to agree in an intergovernmental agreement allocating revenues—similar to SPLOST/LOST arrangements—and that FLOST proceeds are not intended to be used solely to replace revenue lost from the floating homestead.

Weinmann described additional technical changes in HB 581: the new “estimated rollback rate” must appear on May assessment notices; every parcel must be appraised at least every three years; the appeal benefits are limited so only taxpayers who receive a value reduction may obtain certain appeal benefits; and appraisal and notice timing changes could produce different taxable‑value outcomes for neighbors.

Rapson told the board staff was not recommending an immediate opt-out but warned the statutory window to act is short. Chairman Lee Hearn said he wanted time to consult other counties and then give staff direction. No vote or formal directive was taken at the Jan. 9 meeting.

The presentation highlighted tradeoffs counties face between shifting tax burden toward sales taxes (which include nonresidents but are regressive) and preserving revenue tied to rising residential market values. Commissioners asked staff for more analysis and potential public hearings before making any decision on opt-out or FLOST participation.