This is a summary of what HB581 does and why it needs to be approved by voters in November.
Item 2, bullet point 2 is the part of this text that will benefit all Georgians the most. No more HUGE surprise increases in home values.
Please spread the word to every Georgia voter you know encouraging them to vote for the passage of this Bill in November.
House Bill 581 (2024)
Signed into law April 18, 2024 (Act 379). Entire bill is contingent upon November Statewide Referendum (HR 1022)
1) Property Tax Procedural Changes
Change to the Assessment Notice
Removes estimate of current tax based on last year’s millage rates.
Instead, assessment notice will include the current year’s “estimated roll-back rate” established by local government
Disclaimer is required on property tax bill if roll-back rate is exceeded
Codifies requirement that parcels are appraised at least every three years
Provides “three-year lock” only if property value is reduced on appeal
Removes provision limiting fair market value to sale price the year after the sale
2) Statewide Floating Homestead Exemption
Establishes a statewide “floating homestead” exemption based on a rate of inflation determined by
PAIN
Requires approval through referendum in November 2024 (HR 1022); Applies to taxable years
beginning in 2025
Exemption allows assessment on homesteaded properties to only rise annually at the rate of inflation
Property value resets with a sale or adjusts with “substantial property change”
This exemption will be in addition to other homestead exemptions, except other base year value exemptions (freezes or floats). In that case, the taxpayer will receive the exemption that is more beneficial
Any local government wishing not to participate must affirmatively “opt out”
If approved on November 2024 ballot, local governments have until March 1, 2025, to opt-out To opt-out, local government must pass a resolution after: Holding three public hearings and run required advertisements one week prior to each meeting
3) New Local Option Sales Tax and Local Sales Tax Limit Revisions
Revised limitation on local sales tax
Keeps local sales tax limit at 2% (6% including state portion) but allows 3 “buckets” of exceptions, allowing local government 1 percent from each “bucket”
EXPLOST penny
A transportation penny (Regional TSPLOST, Single County TSPLOST, Transit SPLOST, or MARTA)
One additional from OLOST, CSPLOST, MOST, or the new FLOST
Creates a new local option sales tax for counties and cities. This has been referred to as the FLOST
Up to 1 percent sales and use tax for “property tax relief”
Split between the county and cites “that levy an ad valorem tax on property”
County and all cities must have “in effect a base year value or adjusted base year value homestead exemption”
Distributed between county and cities based on the IGA with proceeds used “exclusively for tax relief” similar to LOST
Tax may be levied up to five years but may then be renewed. For renewal, local act by the
general assembly will be required in addition to the IGA and referendum