The Hampton council held its third and final HB 581 hearing on Tuesday, February 25. In addition, the Hampton council voted to stay in the floating homestead exemption.
The city has an existing frozen exemption which is more beneficial to homeowners. Therefore, the city’s decision has no real impact on city homeowners nor the city.
Hampton Stay In HB 581
The Hampton council held three hearings in the past week to discuss House Bill 581. The bill, passed in 2024 and approved by voters in November, created a new floating homestead exemption. City staff recommended the city stay in HB 581 because it had no real effect. That’s because the city’s voters approved a frozen homestead exemption in 2023. The frozen exemption is more beneficial to homeowners because it “freezes” their annual city tax bill, whereas the floating exemption would allow for annual increases tied to the inflation rate. Additional resources about House Bill 581 are on the ACCG website, the Georgia counties association.
Following the third hearing, the city council voted unanimously to remain in HB 581. One factor the city focused on was its eligibility for a possible floating local option sales tax (F-LOST). The new sales tax requires the county and each city within the county to have a frozen or floating homestead before the county can ask voters to approve it. An F-LOST would offset property taxes. Some estimates are an F-LOST in Henry County would greatly reduce, if not altogether eliminate, the city property taxes.
Following the Hampton council’s decision to stay in HB 581, that leaves McDonough as the last city in Henry County scheduled to hold such hearings. The McDonough council meets three times on Wednesday and Thursday, Feb. 26-27.
Featured image shows the Hampton train depot. Clayton Carte photo.
