An initiative from the Georgia Legislature is giving headaches to local government officials.
Gilmer County commissioners, the city councils of Ellijay and East Ellijay and the Gilmer County School Board have all published ads scheduling public hearings on the possibility of opting out of HB 581.
“I’m going to go ahead and just put my position out here, I’m for making sure that the people in Gilmer County have just as good a deal as any of the other 158 other counties, if not better, through local activities,” said Gilmer County Commission Chair Charlie Paris. “I will never favor opting into something like this.”
Representatives from the various boards and councils met Jan. 16, to discuss HB 581.
The bill passed by the Georgia Legislature, which was on the ballot in the last election as the first question, a proposed constitutional amendment. It read, “Shall the Constitution of Georgia be amended so as to authorize the General Assembly to provide by general law for a state-wide homestead exemption that serves to limit increases in the assessed value of homesteads, but which any county, consolidated government, municipality, or local school system may opt out of upon the completion of certain procedures?”
The Association County Commissioners of Georgia’s website says the bill “authorizes a statewide floating homestead exemption for all local governments including an opt-out provision.”
The floating homestead exemption would lock a primary home’s prices at 2024 or the previous year thereafter when a homeowner registers the exemption.
Gilmer County has a floating homestead exemption which went into effect January 2006. This exemption locks in the homeowner’s base value from when they applied and exempts the difference between the current valuation from taxes.
For the majority of homeowners in Gilmer County, the county’s homestead exemption is a better proposition since there is no provision for an increase while the state’s exemption allows for an increase indexed to the inflation rate.
Gilmer County Chief Appraiser Theresa Gooch told the meeting of officials only one floating homestead exemption can be applied, it is an either or proposition.
“There are counties, communities that will benefit from the statewide [exemption],” she said. “Gilmer has just already had something in place.”
Gilmer County Schools Superintendent Dr. Brian Ridley said the bill would work well in other places, but Gilmer County already has exemptions in place.
In the case of the school system, homeowners 65 and over are exempt from school taxes on their primary home. He said this equates to 30 percent of the homeowners in the county not paying school taxes.
“When you say it out loud, it sounds like a good idea,” he said. “The devil is in the details.”
Gilmer County Schools have the seventh lowest millage rate in the state of Georgia, Ridley told an audience at the first public hearing for the Board of Education to opt out of HB 581.
The Gilmer County Board of Education has lowered the millage rate every year for the past eight years, he said.
“For us, HB 581 is not a political issue, it’s just math,” Ridley said. “When we already have such a huge exemption for the 65 and over, we have no intention of overtaxing anybody.”
Opting in would put the school system in financial trouble in the future, he said.
Paris maintains Gilmer County has the third lowest millage rate in the state of Georgia.
Gilmer Tax Commissioner Rebecca Marshall said the legislature is not finished with HB 581. A ‘cleanup’ bill is in the works for the current session just gaveled.
In an interview with The News-Observer, Rep. Johnny Chastain confirmed a cleanup bill “was just dropped” that would postpone the date from March 1 to May 1 for local governing authorities to opt out of HB 581.
“I worked hard on that after hearing from everyone,” he said. “I am happy and hopeful this will pass quickly to give our local governments more time to work through this process.”
In his weekly legislative report, Chastain wrote, “The 7th District is blessed to have very low millage rates and blessed to have very high property values. Additionally, we have elected officials in our district that have been wise financial managers. I have a great deal of confidence they will make the right decisions for all of the constituents” in the district.
“Home rule was put in place for a reason,” Paris said. “There is no reason that we can’t do anything they can do and just do it locally.”
Once a city, county or school system fails to opt out, they are part of HB 581 in the future and whatever changes the legislature makes.
Opting out of HB 581 only applies to the state imposed floating homestead exemption. Both the county floating homestead exemption and the 65 and over school tax exemption will remain in place.
“That is another reason, by the way, that I don’t think it is a good idea to get into this, because they manipulate us,” he said. “I think this HB 581 is manipulation of the worst kind.”
People are angry about appraisals rising each year. Paris said the appraisals are audited every third year to make sure property is being appraised properly. The process is regulated by the state, and a county can be penalized for appraisals which are too high or too low.
State representatives were hearing complaints, he said.
“Their response to that is we are going to fix this, but we are going to do this on the back of the counties,” Paris said.
Gilmer County commissioners have scheduled the first public hearing about opting out Jan. 23.
East Ellijay Mayor Donald Callihan said there are too many unknowns in the bill, and his council wants to maintain local control.
The city had its first public hearing about opting out Jan. 15. No one spoke at the hearing.
Ellijay Mayor Al Hoyle said the Ellijay City Council is moving forward with the hearings in the event the city wants to opt out.
The first hearing for the city is scheduled for Jan. 22.