Two Speakers at First Henry County Schools HB 581 Meetings

Photo collage shows the state capitol building and Henry County Schools district office with the text “property taxes” overlay (Clayton Carte and HCS photos).
Georgia lawmakers proposed and voters approved in 2024 a statewide floating homestead exemption on local property taxes. Henry County Schools will hold public hearings in January 2025 to consider opting out. (Clayton Carte and HCS photos)

Henry County Schools held the first two hearings to consider opting out of House Bill 581. Two speakers shared their thoughts during the hearings to decide if homeowners will see the benefits of the new statewide floating homestead exemption.

The third and final meeting will be next Monday, January 27, at 4:30 pm. Update: two speakers spoke at the January 27 hearing. The school board will vote in February whether to opt out.

Henry County Schools HB 581 Meetings

Lawmakers last year passed House Bill 581, and voters ratified it in November 2024. The bill creates a new statewide floating homestead exemption. This exemption would limit homeowners from experiencing major increases in their property taxes year-to-year if their home value increases. Instead, their tax bill would only increase based on the rate of inflation.

Local governments have until March 1, 2025 to consider opting out. To opt-out, local governments must hold three public hearings. Henry County Schools held the first two of these hearings on Monday, January 13. During those hearings, two Henry County residents spoke. By comparison, nearby Coweta County had six speakers at their first hearing on the same topic.

According to Henry County Schools, 22% of the county’s tax digest is presently exempt from school taxes. The school board’s decision whether to opt-out does not affect the existing exemptions. Homeowners can apply for a general homestead exemption now. The general exemption saved each homeowner $80 in 2024. In addition, the district has larger exemptions for senior citizens. The senior exemptions start at age 62. They increase at ages 65 and 68, before a 100% exemption applies at age 70. A little over 10,000 homeowners receive the senior exemption in Henry County.

Henry County Schools is considering to opt-out of the new exemption, because of the exemption’s financial impacts. According to the district, the impacts include:

  • Lost (or foregone) revenue would restrict HCBOE’s capacity as an educational service provider and employer
  • Over time, trade-offs would be required between advancing competitive pay and increasing size of the workforce for services (e.g., higher teacher pay and larger classes or vice versa)
  • Responsiveness to county growth or elevated student needs would require reduction or elimination of services and/or support

The district estimates the exemption would reduce tax revenues $3.4 million in 2025, $7 million in 2026, and $11 million in 2027. The impact becomes larger each year as homeowners receive more benefit from the exemption.

The district’s full presentation is below. The district’s original press release is also available here.

The third and final hearing will be on Monday, January 27, at 4:30 pm. The school board meets at the district office in downtown McDonough.

Other Districts Considering to Opt-Out

Henry County Schools is not alone in considering whether to opt-out. A review of public notices, meeting agendas and school district websites have identified over 100 school districts in Georgia considering the same.

Within the metro Atlanta area, only Rockdale County Schools has expressed an intent to remain in HB 581. According to the Facebook page This Week in Rockdale, the RCS board voted 4-3 on January 16 to stay in it.

Jackson County, located near Athens, became possibly the first school district to opt-out when the board adopted the opt-out on January 13. Many others may quickly follow.

Lawmakers at the State Capitol are also considering an extension to the opt-out deadline. House committee chair Shaw Blackmon, the original author of HB 581 last year, has introduced House Bill 92 into this year’s session. HB 92 would extend the opt-out date from March 1 to May 1, 2025.

Editor’s correction: the original version of this article stated the general homestead saved homeowners $88. That amount has been updated to $80.

Featured image shows the Georgia Capitol and Henry County Schools district office. Clayton Carte and HCS photos.

About Clayton 1746 Articles
Clayton Carte is the founder and owner of The Henry Reporter. He founded the site in 2017 to highlight transportation projects. Over time, he began covering other topics like new development so residents can best know what’s happening in our community.