PRESS RELEASE - JANUARY 1, 2025
INTENT TO OPT OUT OF HOMESTEAD EXEMPTION
The Thomasville City Board of Education intends to opt out of the statewide adjusted base year ad valorem homestead exemption for the Thomasville City School District. All concerned citizens are invited to the public hearing on this matter to be held at the Thomasville City Board of Education Board Room, 404 N Broad St STE 3, Thomasville, GA 31792 on January 14, 2025 at 6:00 PM Times and places of additional public hearings on this matter are at the Thomasville City Board of Education Board Room, 404 N Broad St STE 3, Thomasville, GA 31792 on
January 23, 2025 at 8:00 AM
and
February 3, 2025 at 3:00 PM
The Thomasville City Board of Education intends to opt out of the provisions of House Bill (HB) 581, a constitutional amendment passed in 2024, and this has no effect on the existing exemption available to homeowners. HB 581 provides an adjustment to the homestead exemption in each taxing district to limit the assessed value of homes to an inflation rate, which has yet to be determined by the state.
Concerns of HB 581 by the Thomasville City Board of Education:
● The constitutional amendment goes into effect 1/1/2025 and allows governments only a one-time chance to opt out of its provisions
● The long-term effect of a floating homestead exemption will shift property taxes from homeowners to other property owners–investment property, farms, industrial and commercial businesses
● HB 581 provides city and county governments the option to ask for an additional penny sales tax to offset any potential loss from the exemption, but school districts were not given this option under the new law
● Unintended consequences - the floating exemption will significantly reduce two areas of state revenue for the school district, local fair share deduction and equalization grant
● Long range financial implications of the floating exemption cannot be projected
● Loss of local control: If the base year value (1-1-2025) is set high and property values decrease, taxpayers would be taxed at an artificially high rate
● What metric will be used as the inflation rate?
● Assessment limits will make it less advantageous for current homeowners to sell their homes and purchase new homes since the assessment limits reset to the new, current market value only upon purchase
● Many other school districts in the state are pursuing the opt out provision of HB 581
For more information visit - https://core-docs.s3.us-east-1.amazonaws.com/documents/asset/uploaded_file/185/District/5144032/Notice_of_Intent_to_Opt_Out_of_Homestead_Exemption__1st_Advertisement_Thomasville_City_Schools__1_.pdf