Most GA school districts opted out of tax break. New law gives chances to change course
Nearly 70% of Georgia’s 180 public school districts opted out of House Bill 581, a new statewide homestead exemption law created to provide property tax relief for homeowners, according to latest data from the Secretary of State’s office.
Voters approved the law during last year’s general election to cap property tax increases on the assessed value of homestead properties at the rate of inflation, with school districts given a one-time chance to opt out by March 1.
But a recently signed law, House Bill 92, gives local governments more time to change course. Gov. Brian Kemp signed the measure on April 1, which extending this year’s decision deadline to April 30 and also set up a way for school districts to change their minds in the future.
Under HB 92, school districts that previously opted out have four additional years — until March 1 in 2026, 2027, 2028 and 2029 — to opt back in by filing a resolution with the secretary of state. The measure also allows local governments and school boards to opt out of the state’s new program annually.
Middle Georgia school officials raised concerns about the original measure, citing that it could have affected district budgets for decades and led to critical revenue loss for staff salaries and student programs.
“This is a 50-year opt-in, which is a long time, and that could drastically reduce our ability to finance education in the town if we opt-in,” Bibb County Schools Chief Financial Officer Eric Bush said at a district board meeting in December.
Despite the extension, several districts, including some in Middle Georgia, have chosen to uphold their original decisions.
Monroe County Schools confirmed it has maintained its decision to opt out for this year, though the district is monitoring how the new law could influence future budget decisions.
“...We’re going to monitor this legislation to determine what effect it will have on our school budget. Once that determination is made, we can move forward with our options,” Monroe County Schools Superintendent Jim Finch told The Telegraph via email.
Bibb County Schools spokesperson Stephanie Hartley also confirmed that the district hasn’t rescinded its position to opt out of HB 581 for this year.
The Houston and Twiggs County school districts also opted out of the homestead exemption in February, but did not respond to requests for comment on HB 92 or whether they might reconsider prior to publication.
Some central Georgia residents have criticized their local school boards publicly and online for opting out of the homestead exemption, citing rising property tax bills and financial strain on homeowners.
State Rep. Dale Washburn (R-Macon), a co-sponsor of HB 92, emphasized that the legislation’s four-year option for annual opt-outs provides local governments with much-needed flexibility while also protecting taxpayers by limiting potential tax hikes.
“We were hearing from local governments that were saying HB 581 was a big decision and if they opt in, then it’d be a permanent thing. This just gives them more flexibility,” Washburn told The Telegraph. “Truthfully, I think that there has been disappointment in the number of local governments that are opting out, and the opt outs across the state are preventing the protection that was intended.”
Washburn added that HB 92 allows school district’s sales tax exemptions for certain construction materials and projects.
As the clean-up bill of HB 581, HB 92 has additional modifications that the public may read on the Georgia Association of Assessing Officials website.