The City of Hoboken and the City of Nahunta officially opted out of the statewide adjusted base year ad valorem homestead exemption, commonly referred to as House Bill 581 (HB 581).
The City of Hoboken council unanimously approved a motion Tuesday, January 25 following three public hearings. The City of Nahunta followed suit Wednesday, January 26.
Legislation allows local governments to remove themselves from the statewide exemption before March 1, 2025.
Every local government is affected by the exemption differently based on its tax digest mixture (commercial, industrial, office, residential, vacant, etc.) and the average longevity of homestead properties. Opting out provides the City muchneeded flexibility to meet demands, provide services, and balance its budget with stability.
Seven residents of Hoboken met officials at City Hall over the course of the three mandated meetings (February 18 two meetings; February 20).
Tim King was the lone in the first meeting Tuesday, February 18 at 11 a.m., Six concerned citizens attended the 6 p.m. meeting. No one attended the Thursday, February 20 meeting.
No Nahunta residents appeared at any of the three meetings (Monday, February 24; Wednesday, February 26 - two meetings).
According to Hoboken officials, the biggest concern of the seven residents was if taxes were going up.
“The purpose of the public hearings was to solicit and receive the public comment,” said City Attorney Adam Ferrell. “There seemed to be a common sentiment about, how would this affect the taxes for the citizens, is it going to go up?
“We don’t ever intend for taxes to go but just like we don’t intend for the cost of eggs or milk or anything else to go up. Mrs. Linda (City Clerk) and I handed out literature which kind of explains what this bill does, and that if you opt out, the local exemption would remain in effect as it is currently.”
Mayor Joey Crews asked for a motion to adopt a resolution opting out of HB 581. Councilman James Ray made the motion with Councilwomen Amy Lee giving the second. The motion was unanimously passed 6-0 ending the nearly five-minute called meeting. Councilwomen Robin Helmuth was absent due to sickness.
A night later in Nahunta, two council members and the major approved opting out. Mayor Marty Lee, Mayor Pro-tem Bruce Davis and Councilman Andrew Altman were the only three present. Both Councilwomen Crystal Johns and Deloise McFadden missed with illnesses.
Mayor Lee asked for a motion to opt out of HB 581. Councilman Altman made the motion saying, “I make the motion that we protect our tax taxpayers’ interest by voting no and opting out on House Bill 581.”
Councilman Davis followed with a second. The motion was passed with a 3-0 vote ending the called meeting less than a minute after it started.
Altman spearheaded the City of Nahunta’s decision to opt out.
“My stance is to maintain local control over tax policy to ensure flexibility, fiscal stability and responsiveness to our community’s unique needs,” Altman during the February 3 city council meeting. “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.”
