MCBOE To Hold Public Hearings on HB581 Exemption
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The Montgomery County Board of Education will host two public hearings on their intent to opt out of House Bill 581 on Monday, January 13, and Friday, January 17.
House Bill 581 is a bill that was signed into law on April 18, 2024, which created three major components regarding property taxes: a statewide floating homestead exemption, a new local option sales tax, and property tax procedural changes.
Though this bill was signed into law in April, it was contingent on the passage of an amendment to the State Constitution, which was voted on during the November 5 General Election. This amendment stated that the statewide floating homestead exemption would be created, but that local governments – city, county, and board of education – had the ability to opt out of the legislation if they felt the need. Some examples of reasons to opt out which were provided by the Association of Georgia County Commissioners included the existence of a local floating homestead exemption and complications that could arise because of the differences in what makes up the county’s property digest, as the exemption draws county funding from commercial and non-homestead properties.
This amendment was passed in the state, as 62.92% of voters agreed to allow the governments to opt out of the law. In Montgomery County, voters followed this approval, as 62.52% of voters authorized the ability for governments to decide whether or not to join the exemption.
The Montgomery County Board of Education discussed the legislation during their meeting last month, where Board Attorney Daniel O’Connor explained that the homestead exemption capped the increase in taxes at the prior year’s inflation rate – a process which he felt could be both beneficial and detrimental to communities throughout the state.
“That’s great if you’re a homeowner that stays in your home a long time, and it probably works well in some urban districts and districts where there’s lots of industry and commercial properties that you can collect taxes from. But it’s something to consider when you’re in Montgomery County, where most of the properties are homeowners,” he explained. “If there is a big exemption – we know the cost of things is not going to go down – there could be harm if we’re locked into this.”
The Board agreed to host the needed public hearings to exempt themselves from the exemption but stated that this decision to hear concerns from the public did not mean that they had already decided on opting out. “This does not mean that we have voted to opt out of the exemption – just that we agree to let the public share their thoughts on it,” Board Member John O’Conner clarified. The district issued a statement that the decision behind their announced intent to opt out is “a concern to maintain local control to ensure sufficient funding to meet the educational needs of the community’s children in the future.”
The first of these meetings will be held next week, at 7 p.m. on Monday, January 13, and 5 p.m. on Friday, January 17. The final hearing will be at 6 p.m. on January 31. All hearings will be held at the Montgomery County Board of Education Board Room.