Public Hearing HB581
H B581: Intent to Opt Out
The state requires three public hearings to be held to provide citizens opportunities to speak “for” or “against” the city’s intent to “opt-out” of the statewide floating homestead exemption.
The deadline to ”opt-out” is March 1st, 2025.
This action does not affect senior exemptions!
HB581 : T he Origin of the bill
The bill was created by the Georgia Legislature in response to rising property values.
The goal of the bill is control assessments by freezing property values.
HB581 : T he I mpact
Increases in property values are capped at a rate that is set by the State Revenue Commissioner.
Example: Assume a house has an assessed value of $100,000 in 2024 and an assessed value of $125,000 in 2025. If the inflation rate was set at 2%, then the taxable value for 2025 would be limited to $102,000. The float would be $23,000 and maintained on the books of the tax assessor until property was sold or transferred.
F LOATING L OCAL O PTION S ALES T AX
FLOST was created to offset the revenue loss from this exemption.
FLOST:
Created by HB581
The cities and counties must have a floating homestead to be eligible.
The FLOST is an additional 1% sales tax to be distributed between governments according to an IGA.
Pro: Property values will be capped and possibly lower taxes.
Con: Would shift more of the tax burden to renters, businesses, or non-homestead properties.
HB 581: Pros and Cons
Con: Could cause the millage rate to be increased unless services were reduced.
Con: When the property is sold or transferred, the property reverts to the current assessed value.
Con: FLOST is not an option to make up the loss in revenue unless all Counties and Cities opt In.
HB 581: Public Hearings
Additional
Public Hearings Will Be Held:
Thursday, February 6th at 11:00 am
Thursday, February 13th at 5:00 pm
@The Douglasville Conference Center
HB 581: Additional Resources
GEORGIA MUNICIPAL ASSOCIATION INFORMATION - ACCG/GMA HB 581 FAQ
