Gilmer County Chair Charlie Paris began the county’s first public hearing on HB 581 with an explanation of the bill.
“First of all, I want to do just a really quick summary of what HB 581 is,” he said. “There are only three parts that I have been able to identify, so far.”
HB 581 consists of the floating exemption, the FLOST and the opt out provision, according to Paris.
“Let’s talk about the floating exemption,” he said.
A primary home’s base value will be set as the 2024 value of the home, with an increase of the same percentage as the consumer price index allowed each year.
“Here is what people don’t realize, you already have a floating exemption,” Paris said. “Gilmer County has had a floating exemption since 2008.”
A primary home in Gilmer County is taxed based on the value of the home when the homeowner applied for their floating homestead exemption.
In the majority of cases, most primary homes in Gilmer County are exempted from the appraised value increases.
In addition, the value of most homes was much lower in the years previous to 2024.
“A lot of people are going to be giving up 2008, 2010, 2015 values and going up to that 2024 value,” Paris said. “It is going to cost them money. It is not going to be an advantage for those folks.”
Bottom line, he said, is the floating homestead exemption most primary homeowners get from Gilmer County is better than what they will receive from HB 581.
Second homes, rentals and commercial property do not benefit from the floating homestead exemption.
Paris continued to the second part of the bill, the FLOST, which is a one cent sales tax counties and cities can put on the ballot to be approved by citizens if they don’t opt out of HB 581. School systems cannot benefit from the FLOST.
Revenue collected by the FLOST must be used to offset property taxes.
“It’s not a bad thing,” Paris said. “It would be useful, I think.”
But, the value of the FLOST is not worth the county being bound to HB 581 and subject to the whims of the Georgia legislature, he said.
“There is one opportunity to opt out,” Paris said. “Once you are in, you’re in.”
Future changes to HB 581 made by the legislature would obligate the counties, cities and school systems to follow along without any voice in the matter.
Paris said he is in favor of home rule. Counties, cities and school systems have boards elected by the local citizenry. These boards should make the decisions locally, he said.
“I am very enthusiastic about home rule,” Paris said. “Home rule says we get to make our own choices. HB 581 says, not any more.”
In the majority of cases, Paris said homeowners who have their primary homes in Gilmer County are getting a better deal than provided for by HB 581.
Mary Abernathy was the first person from the audience to speak. She said after hearing the description from Paris, it sounds like the commonsense approach is to opt out.
Two other citizens were fairly supportive with their comments.
Diane Stromberger told commissioners she wanted the county to stay with HB 581. She said if the county opted out, the property values would increase and the county could keep the millage rate the same, and revenue would grow.
Paris said this was not the case. Every year, the state looks at the county digest, or property values, and gives it a formula to calculate a rollback millage rate. Under the rollback rate, the county’s revenue stays virtually the same.
If the county commission chooses to leave the millage rate the same, or increases it, the board must advertise this as a tax increase and hold public hearings.
In the past, Paris has said there are maybe two times the county commission has not taken the rollback rate since he has been in office.
He also points out Gilmer has the third lowest millage rate in the state of Georgia.
Gilmer County’s next public hearing will be Jan. 30, at 9 a.m., in the commissioner’s conference room.
No audience members spoke at two other public hearings on HB 581 held by the Board of Education and the City of Ellijay last week.