Cornelia moved to adopt House Bill 581 during the city’s third and final public hearing over the matter on Thursday, Feb. 27.
The bill, a statewide floating homestead exemption that caps the annual increases in property values as a form of tax relief, was approved by a majority of Habersham County voters by referendum in November.
The legislation, as drafted, would cap homestead exempt property valuations to the inflationary rate determined by the Georgia Department of Revenue. The bill also requires the reassessments of properties every three years.
Now, in Habersham, HB 581 appears as though it will move forward as all seven cities and the county have either opted-in or indicated plans to do so.
According to the legislation, each county and its municipalities must be unanimous in adopting the homestead exemption to be eligible to vote on FLOST – a 1 cent sales tax that would have to be approved by voters at a later date. Revenue from FLOST, if approved, could only be used to rollback the millage rate.
Cornelia commissioners saw no debate or controversy over the bill before they unanimously moved to approve its adoption Thursday.
During the meeting, Cornelia City Manager Dee Anderson said the city could effectively reduce its millage rate by 4.5 mills if HB 581 moves forward – given FLOST is approved by voters to absorb potential revenue loss.
Cornelia’s current millage rate is at 9.5 mills. “It could be a significant tax reduction for all of our residents,” Anderson said.
A mill is equal to $1 per $1,000 in taxable property value, and property is assessed and taxed at 40% of its value in Cornelia.
“If everyone opts-in, and we can get (FLOST) approved by the voters, then this would be the best option for our property owners,” Commissioner Mark Reed, acting as mayor pro tempore in Mayor John Borrow’s absence, said. “If we opt-in and (FLOST) isn’t approved, then it could have some significant impact on the city and all other cities.”
Rabun County and its cities also appear poised to adopt the bill. In Rabun, the three cities that collect property tax (Tallulah Falls, Clayton, Sky Valley) and the county have all indicated decisions to opt-in as well.
