The Fulton County Board of Education proposed opting out of the statewide adjusted base year ad valorem homestead exemption and will hold public hearings on Jan. 14 and 23 to discuss the proposal.
The homestead exemption was established by House Bill 581 and House Resolution 1022, a Fulton County Schools (FCS) news release said.
These hearings will be held:
- Jan. 14, noon and 6 p.m. at the North Learning Center, 450 Northside Parkway, Sandy Springs.
- Jan. 23, 6 p.m. at the South Learning Center, 4025 Flat Shoals Road, Union City.
The FCS news release said the school district has one of the lowest millage rates in metro Atlanta. It relies on property taxes to fund general operations such as teacher salaries, instructional materials, safety initiatives, utilities, and facility maintenance.
The news release said that since 2018, taxpayers have benefited from a local property tax exemption at 3% or the consumer price index (CPI), whichever is less, ensuring that homestead property owners’ tax bills rise by no more than 3% per year.
“The newly approved state exemption offers benefits similar to those Fulton County homeowners already enjoy but introduces uncertainties in the timing of tax bill finalizations and revenue collections,” CFO Marvin Dereef said in the news release.
Dereef said staff recommends that the FCS Board opt out of the new state exemption to safeguard its financial stability and maintain consistency for stakeholders.
If the school board does not opt out of the state exemption, it will create more administrative work for staff to confirm that the local exemption provides more benefit and will be used, an FCS spokesperson said.
One of the legislative and policy priorities of the school district is to limit local tax exemptions reducing local and state revenues. FCS wants to “ensure local exemptions for ad valorum property taxes do not compromise the financial support essential for maintaining a high standard of education. Balancing support for seniors with fiscal responsibility is crucial for sustaining the education system,” its website said.
Voters approved a new property tax exemption referendum in the November 2024 general election, which caps annual property tax increases and restricts revenue growth for local governments, the release said. The basis of the new cap would be based on the prior year’s inflation rate. That is similar to the homestead exemption in place in Fulton County.
School districts have a one-time opportunity to opt out of this revenue cap. They must submit a resolution to the state of Georgia by March 1.
Stakeholders such as homeowners are encouraged by FCS to attend the hearings to learn more and provide feedback.
