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heated debates in many communities, but not in Wheeler County. Local leaders have said despite the fact that the referendum garnered over a 63% approval by voters statewide in November, they think citizens may not have realized then what they were supporting.

The bill includes a floating homestead exemption that adjusts annually based on inflation and allows local governments to modify sales tax collections to offset lost revenue. The default under the bill is to opt in, but counties that wished to opt out had a March 1 deadline to do so. House Bill 92, which would have extended the opportunity to opt-out until the end of this month, currently awaits a vote in the Georgia State Senate. The HB 581 bill was signed last April by Governor Brian Kemp and went into effect January 1.

A long list of governmental entities decided to opt out of the Georgia bill that would freeze property assessment at the rate of inflation. They offer different reasons. “In order to maintain the level of educational services, we would continue to raise the millage rate,” Oglethorpe County School Superintendent Beverley Levine said in a story posted in the Oglethorpe Echo. “We do not want folks in Atlanta determining what is best for Oglethorpe County.”

For homeowners, House Bill 581 promises tax relief while maintaining the market value of their property. Whatever their property taxes are valued in 2024 will remain constant so long as they live at and own the property (with a few stipulations). So, in essence, HB581 is a floating homestead exemption.

A House Budget and Research Office flier from July 2024 explains: “HB581 provides a statewide ‘floating’ homestead exemption that will limit annual assessment increases on a homesteaded property to the rate of inflation.”

The Georgia Department of Revenue will set the annual rate of inflation based on the consumer price index. So, property taxes will rise only with inflation until the house is sold to a new owner and a new tax assessment is conducted (or if substantial changes are made to the property). This would create a degree of tax certainty for homeowners, ensuring they can anticipate the coming years’ taxes cost more confidently.

But some local governments are arguing that while this appears to cut the homeowner a break, freezing property taxes could adversely impact projected tax revenue — perhaps by millions of dollars of deficit in the future.

Glenwood Mayor G.M. Joiner said the City Council passed a resolution to opt out after holding three public hearings on February 20 and 25.

“Not a single person came to the public hearings,” Joiner noted. “Over 60% of the citizens voted for this county-wide, and you could make a case for that, but to this day, most people still don’t know what the bill truly means. It was very poorly presented.” He added, “I don’t know of anyone around here that has not opted out; even Macon-Bibb County has opted out.”

Joiner said the plan is not beneficial for rural counties like Wheeler where there is little industry, and the tax burden is shouldered by property owners. “This will particularly hurt the schools,” he said, explaining that the only way to make up for lost taxes is by raising the millage. “You can’t go above 20 mills without a referendum, and we are already up close to that now. I can guarantee you nobody is going to do that. And, this is forever, it’s not for five years like SPLOST. That’s absurd.”

The Alamo City Council met February 27 to pass a resolution to opt out after holding the required public hearings. Prior to voting on the resolution, City Councilwoman Pat Woodward voiced her opinion. “It (HB 581) was designed for the metro area. They were the ones who wanted it because their taxes are skyrocketing. It is designed for the state to come in and level it off.”

Woodard said she spoke with a Dekalb County official who told her that if the Dekalb School system did not opt out of participating in the legislation, that school system would be losing tax money amounting to $34 million the first year, $25 million the second year, and $14 million the third year.

“I don’t want the state in control of assessing our taxes. I would trust our local government more than the state capital,” she said, noting that the plan is based on the rate of inflation. “That would hit us harder than it hits them. In the long run, it is a great thing for the state, but we’re the ones who will pay the price. I think the state is trying to cram it down our throats. They have not put out enough information for us or given us enough time to study and react to this,” she said, declaring, “I vote to opt out.”

Mayor Pro Tem Laura Brownley said voters were confused about the bill. “It is all in that legalese that nobody could truly understand. By trying to lower their taxes, it would raise our taxes.”

The Wheeler County Board of Education adopted a resolution at its February 10 session to officially opt out of participating in House Bill 581.

Wheeler County Superintendent of Schools, Dr. C. Alex Alvarez, said Wheeler County’s decision to opt out of the statewide floating homestead exemption “reflects a strategic approach to maintain local control over its tax digest. By opting out, the school system aims to avoid being subjected to a statewide inflation average for property values that could impact its ability to address local inflation rates.” He continued, “This choice allows Wheeler County to have more flexibility in managing its tax revenue, ensuring that the funds are allocated in ways that directly benefit students and meet the community’s needs. With the existing homestead exemption program remaining in place, the district can continue to make decisions about millage rates and taxes in alignment with their long-term goals, rather than relying on statewide system that may not accurately reflect local conditions.”

The superintendent also noted, “This move demonstrates a focus on safeguarding the financial stability and long-term strategic planning needed to support the county’s educational priorities, even as a future challenged with the tax digest and inflation may arise. We aim to continue good stewardship with finances while providing a world-class education for our children.”

Even though in Wheeler County, where the referendum passed with a vote of 60.53%, County Commissioner Keith Mc-Neal wondered whether citizens realized what they were supporting when they voted yes on the confusing language in the measure.

“This is just not a good fit for Wheeler County,” said McNeal. “We would have to generate the same amount of money by raising the millage to offset the loss in property tax,” he explained. Money saved by local homeowners in the near future could adversely impact the community over the long haul, resulting in raising millage rates, which would not be popular, he said.