The Hampton council held the first two hearings Tuesday to discuss HB 581. The house bill created a statewide floating homestead exemption. All local governments are automatically in; they must hold three hearings if they would like to opt-out.
Because Hampton has an existing frozen homestead exemption, the city’s decision whether to stay-in or opt-out of HB 581 has essentially no effect.
Hampton HB 581 Hearings
The Hampton council held two HB 581 hearings on Tuesday, February 18. A third and final hearing will follow next Tuesday, February 25, at 6 pm. The council meets at Hampton City Hall on East Main Street. About ten residents attended the two meetings in total.
The first hearing began with a presentation by the city’s financial advisor, Ed Wall. He explained an overview of House Bill 581, the statewide floating exemption, and Hampton’s existing frozen exemption. The city’s existing frozen exemption, passed in 2023, is more beneficial to homeowners. Therefore, the HB 581 floating homestead does not affect the city. Mr. Wall is recommending the council stay in HB 581 so to remain eligible for a floating local option sales tax (F-LOST).
The F-LOST is a new type of sales tax created through House Bill 581. It allows a county to ask its voters for an additional local sales tax. Proceeds from F-LOST must then offset property taxes. A county’s F-LOST eligibility depends on the county and each city within the county having a floating homestead exemption. This can be the HB 581 exemption or an already-existing floating homestead exemption.
Frozen Exemptions
Though commonly referred to as a frozen exemption, the city’s exemption is a type of floating exemption. Henry County has a similar frozen exemption on county government taxes. These exemptions are frozen because the tax bill is frozen in place for the homeowner. In contrast, the statewide floating exemption allows annual tax increases at the inflation rate.
The county’s frozen exemption applies to the board of commissioners taxes only. It does not apply to school board taxes. Most property taxes go to the school district. HCS opted-out of House Bill 581 last week.
Additional resources about House Bill 581 are on the ACCG website, the Georgia counties association.
McDonough HB 581 Hearings
Lastly, the McDonough council has hearings next week to discuss House Bill 581. Those hearings are as follows:
- Wednesday, February 26, at 6:00 pm,
- Thursday, February 27, at 10:00 am, and
- Thursday, February 27, at 6:00 pm.
The McDonough council meets at McDonough City Hall. The city has no existing homestead exemption for its homeowners. House Bill 581 would provide a first for the city, if McDonough stays in.
Featured image shows the Hampton train depot. Clayton Carte photo.
