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Council hears presentation on House Bill 581 and 1% FLOS option; staff will run fiscal scenarios
Summary
Staff outlined House Bill 581 (a statewide 'FLOS' option) that would allow cities to receive a 1% local sales tax if they opt in, while freezing assessed values for homestead residential properties; staff flagged a March 1 opt-in/out deadline and proposed preparing financial spreadsheets and public hearings for February.
City staff gave a detailed presentation on House Bill 581, describing the 'FLOS' (floating local option sales tax) mechanism and its tradeoffs for predominantly residential cities like Chattahoochee Hills.
"It's called a FLOS, which is a flow floating local option sales tax. And what it does is it provides a 1% sales tax to cities that they can charge if they opt into this, and you get that 1%," staff said, and explained the tradeoff: accepting the 1% county-collected sales tax requires freezing assessed values for homesteaded residential property at current levels (unless ownership changes), which can mean foregone property-tax growth over time.
Staff emphasized timing pressures: cities in Fulton County must decide whether to opt in or opt out by March 1; opting out requires initiating three public hearings quickly. Staff said they would prepare a resolution for the county showing the city’s proposed millage (likely the current rate) and run spreadsheet scenarios to show the likely fiscal impact for residents and city services.
Council members asked for clear math and resident-facing materials so voters can compare the immediate sales-tax benefit to longer-term assessment freezes that could reduce revenue growth. Staff committed to circulating calculations and arranging public education and hearings ahead of any formal council decision in February.
