Council hears briefing on House Bill 581 and the city’s one-time opt-out window

City staff presented an overview of House Bill 581 at the Nov. 25 special call meeting, telling the council the law creates a statewide “floating” homestead exemption and that local governments must choose whether to opt out during a prescribed window.

According to the staff briefing, under HB 581 homeowners receive the greater of the county homestead exemption or the state floating exemption. The presenter warned that if the city remains in the state program, assessed home values for tax-digest purposes would rise only with inflation caps (the presenter used an 8% inflation example), which could reduce the city’s property-tax revenue growth compared with prior practice. The briefing also described a proposed local option sales-tax penny (referred to in the meeting transcript as a potential "floss" mechanism) that some jurisdictions may consider to offset revenue losses.

Staff emphasized that opting out must be done via public hearings conducted between Jan. 1 and March 1 and that the decision to opt out is effectively a one-time choice: "you only get one chance and one chance only to opt in or out," the presenter said. Council members discussed gathering additional information from the Georgia Municipal Association (GMA) and legal counsel before making a December decision about whether to proceed with the required public hearings.

Council did not take action at the Nov. 25 meeting but directed staff to collect materials and prepare for the December meeting so the council can decide whether to move forward with required public hearings and a possible opt-out.