Public Hearing: YES ☐ NO ☒ Department: Board of Commissioners
SUBJECT:
Title
Commission District(s): All Commission Districts
Opting In HB 581
Body
Information Contact: Presiding Officer, Michelle Long Spears, Commissioner - District 2
Phone Number: 404-371-2863
PURPOSE:
To “Opt In” to HB 581, including adopting a Resolution to memorialize and document the reasononing.
NEED/IMPACT:
There is no express need to “opt in” to HB 581, but the adoption of a Resolution through formal action will facilitate memorializing the rationale for opting in. HB 581 provides a newly created floating statewide homestead exemption (the “HB 581 exemption”) and opting in to take advantage of the HB 581 exemption will allow the County to avoid a potential scenario where the County’s taxpayers face skyrocketing property taxes. Without the HB 581 exemption, DeKalb taxpayers could be left with no relief or assistance with property taxes, with the loan exception of the previously used Homestead Option Sales Tax (“HOST”). Currently, HB 581 prohibits DeKalb from having a third Special Purpose Local Option Sales Tax (“SPLOST III”) and continuation of EHOST, so they expire in 2030. Therefore, the County sales and use tax to be used for tax relief would revert to HOST. Further, the County’s existing homestead exemption would expire in 2033. However, when the existing exemption expires in 2033, the County’s taxpayers would get whatever relief the statewide exemption provides and avoid being left with no exemption at.
FISCAL IMPACT:
No immediate fiscal impact or payment due.
RECOMMENDATION:
Recommended Action
Pass an “Opt In” Resolution, in a form approved by the County Attorney and thereby memorialize a documented record of the rational for this decision.