County keeps local homestead exemption
The Ware County Commission has voted to opt out of the statewide floating homestead exemption introduced by House Bill 581 (HB581).
The decision was made after multiple public hearings and careful consideration of the potential impact on local funding.
The commission cited Ware County’s existing homestead exemption system, which has been in place since 2002, as a more beneficial option for local homeowners.
The current system “freezes” the valuation of a taxpayer’s property, ensuring the taxable value does not increase, unlike the floating exemption proposed by HB581. The “freeze” only applies to the homeowner’s primary domicile and up to five acres around the domicile.
Commission Chairman Elmer Thrift emphasized the decision was made to preserve resources for essential services.
The commission held public hearings Thursday, January 30, Thursday, February 6 and Thursday, February 13, 2025, to gather community input before making the final decision.
Key provisions of HB581:
• Statewide Floating Homestead Exemption: This exemption limits annual property tax increases on homesteaded properties to the rate of inflation, determined by the Department of Revenue. The exemption will be in addition to other homestead exemptions, except for other base year value exemptions.
• Changes: The bill modifies property tax assessments and appeals, including changes to the assessment notice and codifying the requirement for parcels to be appraised at least every three years.
• Local Option Sales Tax (FLOST): HB581 creates a new local option sales tax for counties and cities, referred to as the Floating Local Option Sales Tax (FLOST). This tax is aimed at providing property tax relief and can be levied up to five years.
• Opt-Out Provision: Local governments can choose to opt out of the statewide floating homestead exemption by passing a resolution after holding three public hearings and running required advertisements.
The bill’s implementation was contingent upon approval through a statewide referendum held November 5, 2024. Ware County voted overwhelmingly for the bill (62% in favor).
A major misconception voiced by local citizens is that by opting out, the local taxing entities (Ware County Commission, Waycross City Commission, Ware County Board of Education) were voting to raise taxes.
This is not true. By opting out, the local governments recognized the “freeze” available to local homeowners is better than any option available through HB581. By using the FLOST option, actual millage rates can be lowered up to four mils.
By opting out, this will keep the county appraiser’s office from keeping track of another set of taxing equations to compare to options available for exemptions, saving manpower and the need for hiring more personnel, thus saving taxpayers money.
