Cobb Tax Revolt

Summary of HB 581

HB 581 was originally intended to create a floating homestead exemption that would prevent property taxes from increasing as home values rise, ensuring tax increases would only happen through transparent millage rate votes. Unfortunately, the bill was altered to include provisions that benefit special interests while potentially harming taxpayers. While the original intent was good, the final version contains changes leading to automatic tax increases, higher sales taxes, and less transparency. Cobb County currently has a floating homestead exemption on its general fund that will not change with or without HB581.  

What HB 581 Does

1. Automatic Property Tax Increases:
Even if home values decline, property taxes would automatically increase each year according to an inflation index yet to be determined without requiring elected officials to vote on it.

2. Allows Up to an additional 3% Sales Tax Increase:
This could raise Cobb County’s sales tax rate to 9%.

3. Impacts Seniors Through Sales Taxes:
While senior property tax exemptions remain unchanged, if sales taxes are used for schools, seniors would effectively pay school taxes again through those sales taxes.

4. No Cap on Property Taxes:
Elected officials can still vote to increase the millage rate, so there’s no true protection (cap)  against tax hikes in HB581.

5. Removes Fair Market Value Caps on Rental Properties:
  HB 581 allows income-producing properties to be valued above fair market value, leading to higher taxes for rental property, which increases rents.

6. Less Transparency in Tax Assessments:
Tax assessment notices will no longer include an estimate of the tax owed, leaving taxpayers unaware of increases until it’s too late to appeal or attend public hearings.

7. Opt-Out Option for Local Governments:
Schools, cities, and counties can opt out of HB 581 by holding three public hearings and voting to opt out by March 1, 2025.

8. Stricter Rules for Tax Appeals:
Winning a tax appeal now only provides a two-year freeze on your property’s taxable value. Previously, filing an appeal automatically triggered the freeze.

The Bottom Line

HB 581’s original intent was to protect homeowners and increase tax transparency. However, it has been altered to include provisions that burden taxpayers with automatic increases, higher taxes, and reduced transparency. Lobbyists and added provisions undermined Representative Blackmon’s efforts to craft a fair bill.

We urge local governments to opt out of HB 581 and for the state legislature to rewrite the bill without these harmful additions!

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NOTE: SPECIAL ELECTION FOR COMMISSIONERS DISTRICT 2 and 4. Early voting starts Feb 1  Primary Feb 11