After numerous school boards have publicly said that they are looking to opt out of House Bill 581, Senator Chuck Hufstetler, R-Rome, said that he is seeking legislation to take that power away.
For schools to opt out of the homestead tax exemption, three public hearings have to be held in January or February. Floyd County has already completed their first.
Floyd County Schools Superintendent Glenn White has gone on record saying that the property tax revenue goes directly toward quality education and lessening it would be detrimental to students.
The HB 581 floating homestead exemption is unique because the base year value is adjusted and will increase by a rate of inflation determined by the State Revenue Commissioner – likely CPI. • If we take the same property with a $100,000 taxable base year value and CPI is 2% the following year, then the base value of $100,000 may be increased by up to 2% to give an adjusted base year value of $102,000. The exemption ‘floats’ to be worth $8,000 of assessed value so the taxpayer would pay on a taxable value of $102,000 in year 2.
The effect of HB 581’s homestead exemption: • The taxable value of a home may only increase at a rate of inflation each year. • Essentially controlling this will control how much the “value” of a home can increase annually.
Hufstetler said the school system’s tax revenues have increased by over 80% in the past seven years. He added that “When you have over $100 million in the bank, you shouldn’t increase the taxes.”
He is hoping to pass legislation that will focus on taxing authorities that opted out of the exemption and put it on the ballot in those areas.
