Press Release: Chickamauga City School District Decides NOT to Opt-Out

February 19, 2025

Chickamauga City School District Board of Education Addresses HB 581

House Bill 581 Floating Homestead Exemption, passed in November 2024, establishes a statewide floating homestead exemption that limits the annual increase in property tax assessments on homesteaded properties, addresses property tax issues by limiting home value increases to the rate of inflation, and allows a one-time opt-out provision where local governments and school districts have the option to opt out of this exemption by March 1, 2025. While HB 581 aims to reduce property tax burdens for homeowners, it introduces significant financial risks for school systems. Based on preliminary calculations the homestead exemption will negatively impact property tax revenue for the school district.

Chickamauga City School District wants to continue being a top performing school district and an asset to our community. Every year the school district is faced with tough decisions to find a balance between providing a high-quality education for our students, meeting the needs of all learners, keeping local taxes as low as possible, and maintaining a balanced budget. Although state and federal funding comprises a large portion of our revenue, local funds are necessary to make up for the shortfall to maintain high standards and offer high-quality academic and career/technical programs and services.

The school district has a long history of being conservative when it comes to property taxes. The millage rate remained at 14.25 mills from 2015-2022. Then in 2023 the millage rate decreased to 14 mills to provide homeowners with some relief from the increase in property assessments. HB 581 could potentially impact recommendations for a higher millage rate to bridge the funding gap.

After careful consideration, the Chickamauga City Board of Education has decided NOT to opt out of House Bill 581. We have thoroughly reviewed the bill’s provisions, discussed its potential impact, and gathered input from stakeholders before arriving at this decision. We would like to thank all the citizens who took time to attend the public hearings and share their thoughts and concerns. Your input plays an important role in guiding our decision. Even though the homestead exemption will have a negative impact on school district funding, the Board of Education feels this decision is in the best interest of our community.

Thank you for your support.

 

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