VALDOSTA — Lowndes County has joined a growing list of local governments who are considering whether to opt out of a state law designed to rein in property taxes.

House Bill 581 was authorized by a 2024 constitutional amendment aimed at creating a floating statewide homestead exemption that limits increases in taxable home values to the prior year’s inflation rate.

The legislation recognizes that local governments and school systems in Georgia are structured differently with regards to revenues required to provide services, Lowndes County government said in a press release. Each is provided the option either to remain a part of the new homestead exemption or to opt out of the exemption. The very nature of the process and the ballot language presented provides for local elected officials to evaluate local processes to determine the best option for the citizens that they serve.

If a local government chooses to “opt out,” the press release said, it can be opted back in by a new homestead exemption implemented in the future.  However, if a local government remains “in,” there is not an option in the statute to opt out later in the event of changed circumstances or unintended consequences.

“Local government officials are elected to govern locally,” the release said. “If a local government or school system stays in, House Bill 581 would erode the ability of local elected officials to represent taxpayers by narrowing options for making the best and most efficient allocation of revenues as tax dollars are returned to citizens through services each budget year.”

Current considerations for Lowndes County include the following:

• The gap between the actual fair market value and the capped value will increase over time and could result in a need to increase millage rates to make up the difference in revenue required to provide services.
• Homestead property owners would have stability in the amount of increase annually.
• The percentage increase would be determined by an inflationary index chosen by the revenue commissioner of the state of Georgia, someone local citizens did not elect.
• The benefit to homestead property owners would increase over time as long as they own the property.
• The benefit is also not equitable from the beginning, if all homestead properties are not valued properly.
• Taxes on other properties (rentals, businesses, farms, etc.) would increase to make up for the benefit to homestead properties.  This could have a substantial negative impact on business, industry, affordable housing, rental rates, and Lowndes County’s agricultural community.
• Tax inequities would be created based on long-term ownership versus newer ownership.
• The exemption may disincentivize sale of homestead properties.
• It may also disincentive the recruitment or expansion of businesses to Lowndes County.
• Lowndes County already has a $6,000 homestead exemption for homeowners up to 65 years of age and a $10,000 homestead exemption for homeowners 65 and older. These exemptions are significantly more than the state statutory exemptions.

House Bill 581 will not have the same consequences for every city, county, and school system across the state, the Lowndes County press release said. Some local governments and school systems in Georgia may stay in or opt out partly due to other local exemptions that provide relief to property owners.

Lowndes County is sensitive to rising property assessments. Those 65 and older may be financially vulnerable due to increases in the cost of living to include rising property values.

“Lowndes County is committed to working with other local governments and the school systems in our community to explore an even more meaningful senior exemption,” stated Chairman Bill Slaughter. “An increased senior exemption will provide an immediate benefit without significantly shifting a portion of taxes to non-homestead parcels,” Slaughter added.

In accordance with guidelines set forth by House Bill 581, Lowndes County will hold three public hearings as follows:

• Monday, Feb. 10, at 9 a.m.
• Tuesday, Feb. 11, at 6 p.m.
• Monday, Feb. 24 at 9 a.m.

All hearings will be held in the Lowndes County Board of Commissioners Meeting Chambers, second floor, 327 North Ashley Street, Valdosta, Georgia 31601.