Press Release: Chickamauga City School District Addresses HB 581
Post
January 15, 2025
Chickamauga City School District Addresses HB 581
Chickamauga City School District announces its intention to opt out of Georgia House Bill (HB) 581. Passed by the Georgia Assembly in 2024, HB 581 introduces a floating statewide homestead exemption that limits increases in taxable home values. The new legislation allows the homestead’s base-year value to increase annually up to the inflation rate determined by the State Revenue Commissioner. The value of the exemption is the difference between the adjusted base-year value and the fair market value. By capping homestead property values, the tax burden shifts disproportionately to businesses, farmers, other non-homestead property owners, and rental properties, driving rent up for lower-income families. It also shifts a higher tax burden to all new homeowners, including first-time homeowners and anyone moving to a new home. This could negatively impact economic growth within the community.
While HB 581 aims to reduce property tax burdens for homeowners, it introduces significant financial risks for school systems. Chickamauga City Schools anticipates being particularly affected because of the high percentage of stable residential properties in its tax digest. Not opting out could potentially impact recommendations for a higher millage rate to bridge the funding gap.
HB 581 allows only one opportunity to opt-out of the floating homestead exemption. After reviewing data and careful consideration, the Board of Education determined that HB 581 may significantly impact the school district’s finances. It could affect fiscal planning and the district’s ability to generate sufficient revenue to continue providing a high-quality education and sustaining the current programs, services, and opportunities for the students at Chickamauga City Schools. Opting out of HB 581 is essential to safeguard the long-term fiscal health of the school district.
As required by law, the Chickamauga City Board of Education will hold three public hearings as part of its process for opting out of House Bill 581. The first hearing will be held on January 23, 2025, at 6:00 pm. The second hearing will be held on January 31, 2025, at 11:30 am. The third hearing will be held on February 10, 2025, at 4:45 pm. All the public hearings will take place at the Board of Education, 402 Cove Road, Chickamauga.