Nahunta officials protecting against possible future property tax increases
NAHUNTA — City of Nahunta officials announced Monday they will opt out of House Bill 581.
The decision came during the February 3 monthly meeting ahead of the March 1 deadline. The City of Nahunta was joined a day later by the decision of the City of Hoboken council.
Opting out will help protect property owners from potential tax increases. There are requirements which must be adhered to in opting out including three public hearings.
“My stance is to maintain local control over tax policy to ensure flexibility, fiscal stability and responsiveness to our community’s unique needs,” said Councilman Andrew Altman, who helped spearhead the decision by fellow council members.
“HB 581 limits our ability to respond to economic changes and restricts our financial flexibility. The bill presents long-term financial risks, including potential budget shortfalls, service reductions, and increased dependence on state funding.
“We must prioritize fiscal sustainability while ensuring we have the necessary resources to meet the needs of our community. Instead of adopting a one-size-fits-all approach, Nahunta should retain the ability to adjust its tax policy based on local conditions and needs.”
The City of Nahunta will hold its first meeting Tuesday, February 18 at 11 a.m. The second and third are scheduled for Thursday, February 20 at 2 p.m., with the third following at 6 p.m., followed by a called meeting at 6:30 to adopt a resolution for opting out, which must be presented to the Secretary of State by March 1.
The 6 p.m. time slot fits the requirement of one meeting between the hours of 6 and 6 p.m.
In the 2024 legislative session, the Georgia General Assembly passed HB581, which was signed into law April 18, 2024 by Governor Brian Kemp. The bill provided for several significant changes impacting local governments revenue.
The three major components are a procedural change to property tax assessments and appeals, a new statewide homestead exemption that applies to local governments unless that government body affirmatively opts out, and a provision to create a new local option sales tax.
Andrews shared his thoughts on HB581, which introduces significant changes to property tax assessments and local tax policy.
“While it provides shortterm property tax relief, the long-term financial implications
for Nahunta could
be severe,” he said.
Some of his key concerns were the impact of Base Year Value and Inflation Adjustments.
“The base year for property valuation is set at 2024 levels,” he said. “It resets only when a home is sold or undergoes a substantial property change (not clearly defined).
“The tax digest is based on gross value, not net value, which does not fully account for exemptions and other adjustments. Inflationary cost increases for government services (fuel, insurance, equipment) lag behind adjustments, usually taking two years to be reflected. This will put financial strain on local budgets.”
Andrews sees an uncertain financial impact on local government “We cannot fully assess the financial impact without knowing how valuation decisions will be made in the coming years,” he said. “In previous years, had this been enacted, we would have experienced significant revenue constraints, affecting our ability to provide essential services.
“Since statutory and operational funding requirements are not adjusted for inflation in real time, we risk service reductions, staff cuts, or even loan defaults.”
He believes the loss of local control and increased dependence on state funding makes Nahunta vulnerable to policy changes beyond our control.
“We should retain flexibility to adjust our tax policy to meet local needs, crises and economic shifts rather than depend on legislative decisions at the state level,” said Altman. “There is no built-in solution to address revenue shortfalls, meaning cities will have to make critical funding decisions before we fully understand the financial impact.”
By maintaining local tax policy for fiscal stability, Altman says it allows local governments to adjust millage rates based on actual economic conditions, ensure long-term fiscal stability rather than implementing changes based on a single year’s property values, and provides greater sustainability for infrastructure and public services.
He believes implementing a sales tax as a balanced revenue source will be beneficial.
“Larger capital projects can sometimes be funded by Local Option Sales Taxes which distributes the tax burden more equitably among all residents and visitors, rather than solely on property owners,” said Altman. “You can offset property tax losses without sacrificing essential services.
“However, this requires voter approval and is not an immediate relief option — meaning short-term revenue gaps remain a serious risk.”
