Hampton and McDonough will hold public hearings this month to consider opting-out of HB 581. House Bill 581 is a new statewide floating homestead exemption which voters approved in November. The county’s other two cities, Stockbridge and Locust Grove, look like they are staying in HB 581.
HB 581 Public Hearings
House Bill 581, approved by state legislators in 2024 and subsequently ratified by voters in November, was intended to cap homeowners’ annual tax increases. The measure created a floating homestead exemption, which would limit a homeowner’s annual property tax bill to increase no more than the inflation rate.
Local governments have until March 1, 2025 if they choose to opt-out. House Bill 92, being considered now in the 2025 legislative session, would extend this deadline to March 2029. A county or city must hold three public hearings before they can vote to opt-out. McDonough and Hampton have announced public hearings for said purpose.
Hampton
Hampton will hold their first two hearings on Tuesday, February 18, 2025, at 10:00 am and 6:30 pm. The third hearing will be on Tuesday, February 25, at 6:30 pm. Hampton City Hall is located at 17 East Main Street, Hampton.
The city has an existing frozen homestead exemption which is more beneficial to homeowners than HB 581. For that reason, the city’s decision to opt-out has no real effect on homeowners. The same cannot be said about McDonough, discussed more below, who presently have no homestead exemptions.
McDonough
The McDonough council decided at their February 6 meeting to hold HB 581 public hearings. They will hold hearings on the following dates and times:
- Wednesday, February 26, at 6:00 pm,
- Thursday, February 27, at 10:00 am, and
- Thursday, February 27, at 6:00 pm.
McDonough City Hall is at 136 Keys Ferry Street, McDonough.
Because McDonough does not presently have any homestead exemptions, the new floating homestead would offer benefits to homeowners if the city remains in. A floating homestead offers greater tax savings as the homeowner’s property value increases over time. For example, many Henry County homeowners save over $1,000 annually on their county taxes based on value increases while they have owned their home. The county’s frozen exemption has been in place since 2004.
Floating LOST Sales Tax
Lastly, McDonough’s decision whether to opt-out of HB 581 would affect the whole county’s ability to ask voters for a floating local option sales tax (FLOST). This is a new local sales tax created in HB 581 which, if approved, would offset property taxes. Eligibility for a FLOST is limited to counties where the county commission and every city have a frozen or floating homestead exemption in place.
If a FLOST were passed in Henry County, then the county and each city would receive a portion of the proceeds. This is similar to the existing local option sales tax (LOST). Collections would then reduce the property tax rate. Based on recent discussions at city meetings, there is interest by Henry County officials in asking for a FLOST.
The school board’s decision to opt-out of HB 581 does not affect FLOST eligibility. They voted to opt-out at their February 10 meeting.
Editor’s note: This article was updated to include Hampton’s third hearing date and time.
Featured image shows a collage of city buildings in Henry County. Various sources.
