On Tuesday evening, December 17, Peachtree City hosted a Town Hall meeting to discuss HB581, Georgia’s newly enacted property tax exemption law. The purpose of the meeting was to provide residents with an overview of the law, address questions, and gather feedback from the community.
More than 40 residents attended the meeting in person in Council chambers. A video recording of the meeting can be accessed at https://rb.gy/wzy7ic.
HB581, which was Amendment 1 on the November ballot, amends the Georgia Constitution. HB581 passed in Fayette County with 57% in favor and 43% against. The ballot measure includes an opt-out clause, allowing cities and counties to choose whether to participate.
Peachtree City leaders, in collaboration with neighboring municipalities and Fayette County, are currently assessing the potential impact of HB581 and determining the best course of action to serve the citizens of this community. While opting into the law is automatic, opting out requires three public hearings and submission of a Resolution to the Secretary of State by March 1, 2025.
At its core, HB581 limits property tax increases for homesteaders, capping them to the rate of inflation, as defined by the Consumer Price Index (CPI) set annually by the Georgia Revenue Commissioner. As a result, homesteaders in Georgia will immediately benefit from a maximum cap on property tax growth. This cap will not apply to rental properties, industries, or commercial properties. The new exemption will not affect any existing homestead exemptions such as the senior homestead exemption.
The law also introduces the option for local governments to place a one-cent sales tax on the ballot, known as the Flexible Local Option Sales Tax (FLOST). This new sales tax would be intended to replace revenue lost from the reduced property taxes. A dollar-for-dollar millage rate reduction must offset any excess revenue from the FLOST. The FLOST, if approved by voters, would last for five years.
However, if voters reject the FLOST, cities and counties could potentially be forced to either reduce services or raise millage rates as the exemption’s effect increases year over year. This could signal quite a shift for Peachtree City, as we have reduced our millage rate from over 7 mills to less than 6 mills over the recent 12-year period.
Peachtree City, Fayetteville, Tyrone, Brooks, Woolsey, and Fayette County officials have held three meetings so far to discuss HB581’s long-term implications. I am confident that our strong and positive collaboration will point to a unified decision.
Interestingly, at the Town Hall, citizen questions and comments echoed the discussions taking place among city and county leaders. Among the points of consideration is the belief that voters supported HB581 and now expect it to be implemented. For elected officials, opting in may be seen as a way to honor that voter intent. However, concerns remain over the potential challenges of securing voter approval for the FLOST, as well as the long-term sustainability of the tax exemption model as a whole.
Other challenges include the complexity of the law, particularly the millage rate rollback that applies to all property types—residential, industrial, and commercial—if FLOST revenue exceeds the property tax exemption. Local officials and especially the Fayette County Development Authority work to increase the industrial tax base and improve the balance of residential and industrial property taxes. This detail of HB581 runs counter to those efforts.
Some also questioned whether the short-term relief for homesteaders would be outweighed by potential long-term revenue shortfalls. HB581 is being compared to California’s Proposition 13, a 1978 law that limited property tax increases to two percent per year.
The potential for disparities between counties, depending on whether they opt in or out of the program, could have unforeseen consequences, particularly in the real estate market.
Notably, school systems may opt-out without consequence. The FCBOE has indicated they will vote to opt-out.
No votes were taken during the Town Hall. Instead, it was emphasized that the meeting was an opportunity for transparency and open communication, with the goal of ensuring all residents are informed and have the opportunity to provide feedback during the decision-making process.
For those with additional questions or comments, City and County leaders encourage residents to reach out via email. Peachtree City Council can be contacted at [email protected].
Kim Learnard, Mayor
Peachtree City
Looking at this issue from a different perspective, if HB581 is opted “in” we just might get a glimpse of how our local leaders prioritize. Should cities and counties be forced to budget within the constraints of CPI would they opt to reduce headquarters staff over public safety, for example. Would they be forced to dip into reserves to maintain the status quo?
These decisions are not going to be easy, nor will they be made without burning political capital. Perhaps even force us as the electorate to become more involved/interested in who we elect. At the federal level it would be a Godsend.
I make no recommendation, but only ask that it be thoroughly thought out.
Hi Councilman King
Happy New Year. We agree I think the intent of 581 does challenge all local government agencies to work within the same bacsic constraints as voters have in their finances. I think governments choosing “opt out” are opening pandora’s box. HVoters have already “opted in”. How will they react?
Its reasonable to say the 3% cap homestead exemption FCBOE is under came after they took $45M from ESPLOST III for the new Booth Middle without disclosing before time.
I think it is great to have our Mayor writing in “The Citizen.” Our Mayor is providing good-to-know information.
I agree. It is refreshing to see this in our local paper print, the Mayor addressing a newly enacted property tax exemption law for constituents to read and better understand. And to that … “An informed citizenry is at the heart of a dynamic democracy.” Thomas Jefferson
I think its fair to question the Mayor’s use of the term “homesteaders”. In my understanding, homestedders are people who own and occupy their home. To be clear 581 does not apply to Commercial, Industrial or RENTAL property. Taxes on these properties are not limited.
This new ownership will suck. Where is Steve Brown? Too bad because this was a great local news source. It will not be the same. The left will ruin it like everything else they get their hands on. Leonard has got to go. All I know now is thank the Lord Trump is back!!!!!!! Adios, The Citizen.
Just put the fried in the bag, please.
Brown is probably on “Truth” Social or some other echo chamber screaming into the void.
I think the “Charliegirl” moniker is just one of several of Steve’s pseudonym names he posted under…….i’ve watched for a long time as “Charliegirl” et al would do nothing but sing the praises of Steve Brown, while never really offering up much original thought. Things that make you go “hmmm…..”
It’s abundantly clear that this has with the New Ownership become a democrat leaning publication.
Leanord ran on less traffic and no buildup well, how’s the traffic? Wait for the build up…someone’s getting rich, I wonder who that might?
Bless her heart.
I for one will not be reading it this Democrat leaning run paper anymore.
Too bad you are so soft. Even if it is going to be more centrist, why are you afraid of hearing and seeing from both sides of the political spectrum instead of just one side (as the Citizen was before the ownership change)?
PTC Resident – Better get back to Fox, I’d hate for you to be sullied by anything outside the echo chamber.
At least this person will admit how closed minded s/he is, so let’s him him/her that anyway.
How in the world does an article written by the mayor, lead you to calling this publication “left-leaning”. Instead of taking your ball & going home, sticking out your lower lip and pouting all the way, how about offering up a well thought-out opinion of your own to counteract whatever it is you’re reading that makes you so insanely offended? We need disagreement in this country…..civil disagreement…….dare I say “mostly peaceful disagreement” (to borrow a phrase from the leftist media you and I both detest). But you’re part of the problem – not part of the solution – when you throw a fit and retreat back to your corner and pout like this.