VALDOSTA — The Lowndes County School District announced Friday that it plans to opt out of a homestead exemption offered by House Bill 581.

HB 581, passed by the Georgia General Assembly in 2024, introduces a floating statewide homestead exemption that limits increases in taxable home values to the prior year’s inflation rate, the school district said in a statement released late Friday afternoon.

The law allows local governing authorities to opt out of the homestead exemption following three public hearings. Lowndes County Schools has scheduled those public hearings for noon Jan. 13, noon Jan. 23 and 6 p.m. Jan. 23 at the Board of Education office, 1592 Norman Drive.

The school district said its analysis showed opting out would best protect the financial stability of the schools and protect public education in the community.

“Our mission is to serve every child, every day. To do that, we must make decisions that safeguard our ability to provide quality education while fostering equity for all stakeholders,” said Superintendent Sandra Wilcher.

While HB 581 aims to reduce property tax burdens for homeowners, the school district said it introduces significant financial risks for school systems.

The district summarized the reasons it recommends opting out:

Preserving local flexibility: HB 581 allows only one opportunity to opt-out, with a firm deadline of March 1, 2025. Failing to act now would permanently bind future boards to the bill’s terms, removing local control.

Equity in taxation: 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. These factors could deter economic growth and create inequities within the community. 

Stable funding for education: Suppressed property values would reduce the school district’s primary funding source, potentially leading to budget shortfalls that could jeopardize vital programs, services, and student opportunities. Not opting out could potentially impact recommendations for higher millage rates.

Unnecessary financial strain: The district is obligated to pay the first five mills collected to the state. HB 581 requires the district to meet the state’s Local Fair Share contribution based on pre-exemption property values, compounding the financial impact. 

“Lowndes County Schools has consistently prioritized stability, equity, and academic excellence,” said Wilcher. “Opting out of HB 581 allows us to uphold these values and remain accountable to the needs of our students, families, and the entire One Lowndes community.” 

By opting out, Lowndes County Schools will maintain existing property tax assessment practices, the school district said in its press release. Following the public hearings, the Lowndes County Board of Education will vote on the resolution to opt out of HB 581 before the March 1, 2025, deadline, the release said.