Henry County Schools Hosts 3rd and Final HB 581 Hearing

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 third and final public hearing to consider opting out of House Bill 581 on Monday, January 27. Two speakers addressed the board during the hearing.

The school board will take action whether to opt-out at their February meeting. They meet on Monday, February 10.

Henry County Schools House Bill 581 Third Hearing

Lawmakers approved last year and voters ratified in November a new statewide floating homestead exemption. The floating homestead would cap homeowners’ property tax bills to increase no more than the rate of inflation year-to-year. The legislation, house bill 581, requires local governments to hold three public hearings if they would like to opt-out. Counties, cities and school boards have until March 1, 2025 to complete the process.

Henry County Schools held the first two hearings on January 13. Two speakers addressed the board at those hearings. Both speakers were against the school board opting out. Two more residents offered their thoughts at the January 27 hearing. They too are opposed to opting out.

“I urge this board to respect the will of the voters,” asked Vance R. The speaker remarked 59% of Henry County voters voted in favor of the homestead exemption on the November ballot. The second speaker, Kelly, added “I also want to speak in favor of not opting out. The voters voted to pass this legislation; I don’t think the [opt-out] is going with the will of the voters.”

If the school district opts out, then homeowners’ property tax bills would see no change in their school district taxes. Annual increases could continue at market rate. Henry County Schools comprises about 60% of property tax revenue in Henry County.

Henry County Schools Presentation

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. Henry County ranks 3rd in value of exemptions offered, compared to the 10 largest school districts in Georgia, according to the district. 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. It is worth noting the HCS senior exemptions have no income cap. Several other counties in Georgia have an income requirement to receive the senior tax exemption.

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.

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.