Elected Mitchell Boston Patrick Underwood Robert Dodd Officials Luciria L. Lovette Bridgette Kelly Sarah B. Hayes Mayor Mayorand Council Meeting January 27, 2025 @ 6:00 PM Walthourville Police Department The Honorable Mayor Sarah B. Hayes, Presiding AGENDA I. Call to Order: II. Roll Call III. Invocation IV. Pledge ofA Allegiance V. Adoption of Meeting Agenda VI. Adoption of Regular Meeting Minutes Mayor Sarah B. Hayes City Clerk Appointee In Unison Councilmembers Councilmembers January 14, 2025 Regular Meeting Minutes January 14, 2025 Executive Session Minutes VII. Presentation(s) VIII. Agenda Item(s) None 1.HB5 581 Discussion IX. Department Comments Attorney Luke R. Moses City ofWalthourville Mr. Patrick Golphin Deputy Chief Chance Chandler ChiefChristopher Reed Walthourville Citizens Mayor Sarah B. Hayes City ofWalthourville Water Department Fire Department Police Department X. Citizens Comments XI. Mayor's Update XII. Elected Officials' Comments Mayor Pro Tem Luciria L. Lovette Councilmember. Mitchell Boston Councilmember Patrick Underwood Councimember Bridgette Kelly Councilmember Robert Dodd XIII. Office oft the Mayor XIV. Executive Session XV. Adjournment Mayor Sarah B. Hayes Mayor and Council None When an Executive Session is needed, it is called for the following: (Litigation, Personnel, and Real Estate) City of Walthourville Mayor and Council Meeting Minutes January 14, 2025 @ 6:00PM Walthourville Police Department I. II. Call to Order: The meeting was called to order at 6:00 PM by Mayor Sarah B. Hayes. Roll Call: The roll was taken by the City Clerk with the following members present: Mayor Sarah B. Hayes Councilman Mitchell Boston Mayor ProTem Luciria L. Lovette Councilman Patrick Underwood Councilwoman Bridgette Kelly Member Absent: Councilman Robert Dodd. The attendance ofthe council constituted a quorum Attorney Luke R. Moses entered the meetingat6:211 PM. III. Invocation: The invocationasgiven by ChiefMaxwell. IV. Pledge of Allegiance: The Pledge of Allegiânce was recited in unison. Mayor Hayesi requested'a Momentof Silence to honor the Late President Jimmy E. Carter. President Carterissued the Charter for the City of Walthourville in 1974 when he was Georgia's Govérnor. V. AprovalofAgenda: Ther motiontoapprove the agenda was made by Coumilmenbehkell) andti the second was added by Councilmember Boston. Vote: 4-0: Motion Carried Unanimously. VI. Approval ofMinutès: The motion to approve the following minutes: Decèmber 10.2024 Regular Meeting Minutes, the motion to approve was madeby Councilmember Boston and the second was added by Voting Favorably: Councilmembers: Boston, Underwood and Kelly. December 27, 2025 FY 2025 Budget Adoption Minutes, the motion to approve was made by Councilmember Kelly and the second was added by Voting Favorably: Councilmembers: Boston, Underwood and Kelly. Councilmember Underwood. Opposing: Mayor Pro Tem Lovette. Vote: 3-1: Motion Approved Councilmember Boston. Opposing: Mayor Pro Tem Lovette. Vote: 3-1: Motion Approved. 1 January 7,2025 Special Called FY: 2025 Budget Amendment Meeting Minutes. The motion to approve was made by Councilmember Boston and the Voting Favorably: Councilmembers: Boston, Underwood and Kelly. second was added by Councilmember Underwood. Vote: 3-1: Motion Approved Opposed: Mayor Pro Tem Lovette. VII. Presentations Atlantic Waste Mr. Sam Sullivan Mr. Sullivan reported that the conversion to Atlantic Waste was going really well. They have received a small numbérofcalls from citizens. He said the drivers and crew are learning the routesandthe dynamics of the city. He gave accolades to the City Hall Team in helping to make this transition smooth. He stated Atlantic Waste would becleaning up the cityby bringing in their grapple trucks to clean the cityup from Bulk Waste. Mr. Sullivan stated the calls they received were fromcitizens stating they had bulk that the City of Walthourville did not/would not tpick up. Hespoke with Atlantic Waste owner, Mr. Wallsand they decidedatmoagaitional cost to thecity to come out and clean it upandstart fresh. They expect to have this completed by Mr. Sullivan showed adisplay ofan"out of compliance," tag that Atlantic Waste willbegin using inl February whena citizen'h has trash that is out oft the scopeofar normal pickup. He added the turnaround time for getting a trash can toa citizen would be 24 hours. He stated" that he was happy thus far with February 1St. the convèrsion and he only expects things to get better. Liberty County-Tax Assessor Chief Appraiser Keith Payne Mr. Payne and his team presentèd a presentation about the duties of the Tax Assessor's Office. Fhe purpose of the Tax Assessor's office is to assess property at Fair Market Value (OCGA 48-5-2(3). "Fair market value of property" means the amount al knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm'sl length, bona fide sale. The income approach, if data are available, shall be considered in determining the fair market value of income-producing property. If actual income and expense data are voluntarily supplied by the property owner, such data shall be considered in such determination. Notwithstanding any other provision of this chapter to the contrary, the transaction amount of the most recent arm's length, bona fide sale in any year shall be the maximum allowable fair market value for the next taxable year. With respect to the valuation of equipment, machinery, and fixtures when no ready market exists for the sale of the equipment, machinery, and fixtures, fair market value may be determined by resorting to any reasonable, relevant, and useful information available, including, but not limited to, the original cost oft the property, any depreciation or obsolescence, and any increase in value by reason of inflation. Each tax 2 assessor shall have access to any public records oft the taxpayer for the purpose of discovering such information. Mr. Payne referenced Bona Fide Sale which is Arm's length, bona fide sale" means a transaction which has occurred in good faith without fraud or deceit carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self- interest, including but not limited to a distress sale, short sale, bank sale, or sale 1. "Current use value" of bona fide conservation use property means the amount a knowledgeable buyer would pay for the property with the intention of continuing the property in its existing use and in an arm's length, bona fide sale and shall be determined in accordance with the specifications and criteria provided for in subsection (b) of Code Section 2. "Current use value" oft bona fide residential transitional property means the amount a knowledgeable buyer would pay for the property with the intention of continuing the property in its existing use and in an arm's length, bona fide: sale. The tax assessor shall consider the following criteria, as applicable, in determining the current use value of bona fide residential at public auction. 48-5-269. transitional property: A. The current use of such property. B. Annual productivity; and existing use. C. Sales data of comparable real property with and for the same Mr. Payne gave notable dates that are important to the Tax Assessors Office. January 1St-April 1Sti is the period toi file an appeal on the assessed value. April 1St is the deadline to file for a Homestead Exemption. May 12th the Tax Assessors notices are mailed, citizens have 45 days to He also gave information on the Kemp, Deloach and Williams Tax Relief Exemption Bill. That bill, cosponsored by then-State Sen. René Kemp and State Reps. Al Williams and Buddy Deloach, capped Liberty County taxes Mr. Payne stated that his office is open to and available to answer and O January 1St Property is assessed. appeal. at 3% or the cost ofliving, whichever: is less. assist any citizens. 3 VIII. Agenda Items: 1. LCPC Mr. Todd Kennedy Business License Request for a Cottage Food Business. Ms. Bianca Williams applied for a Food Cottage License. She presented her business plan to the Mayor and Council and informed them she had worked in the food industry from McDonalds to a 5 Star Resort. She will be selling candy fruit treats and there will be no visitors to her home, and she will also have a food truck. Councilmember Boston askedi ifthe Fire Department has conducted an inspection. Inspections occur after the council approves the license, the inspection is arranged between the Business License Clerk, Ms. Jackson and Chief Maxwell. The motion to approve was made by Councilmember Boston and the second was provided by Councilmembers voting favorably: Boston, Underwood and Kelly. Councilmember Kelly. Vote: 3-1: Motion Carried. Member Abstaining: Mayor Pro TémLovette. 2. LCPC Mr. Todd Kennedy Business License Request for a Home-Based Business. Mr. Kennedy stated the applicant Ms. Ward was ill and unablet to make the meeting. Mr. Kennedy stated the proposed business is home based that will consist of Christian Life Coaching. Sessions will be conduptedirtually and thename of the business is Blossoming with. Jiren LLC and the location.will be 128 Dorsey Road. The motion to approve was made by Councilmember Bostonand.the: secondwas added by Councilmember Coundilmembers voting favorably.were: Boston.Underwood and Kelly. Underwood. Vote: 3-: Motion Carried. MemberOpposed: Màyor Pro TemLovette. 1 3-LGPC Mr. Todd Kennedy BusinessLicense Réquest foraHome-Based Business. Mr. Kennedy presented the business license request for a Personal Service Shop that will provide beauty and salon services. The Business Owner is Ms. Lamonica Jenkins and the address is 4981 West Oglethorpe Highway. Ms. Jenkins stated she wanted to do something different, offer a different' service. The motion to approve was made by Councilmember Boston and the second was added by CoumealmemherUndensoa. Councilmembefvoting favorably: Boston, Underwood and Kelly. Vote: 3-1: Motion Carried. Member Opposed: Mayor Pro Tem Lovette. 4. City ofWalthourville Ms. Shana T. Moss Cybersecurity. Ms. Moss stated this would be at two part presentation, consisting of herself and Mrs., Jessica Ivey, with VC3. Mrs. Ivey was present by telephone. Ms. Moss stated the city's IT Provider, VC3 recommended the City Hall and Police Servers were outdated. The Mayor and Council were notified on September 19, 2024 at the first budget workshop that servers at both locations were needed. The cost andi installation to replace both servers would cost approximately $45,000. Ms. Moss stated the servers were not placed in the FY 2025 Budget; therefore, the city 4 had to seek other alternatives to obtain servers. The State of Georgia is offering a State and Local Cybersecurity Grant Program. This program is aU.S. Federal Grant Program designed to enhance cybersecurity measures at the state and local government level. Under this grant program, 80% ofthe program is covered by the Mrs. Ivey, stated that VC3 is always working to enhance and protect the clients they service. She added the city and police departments servers were: no longer protected by Microsoft and that the servers were inj jeopardy of crashing, iti isno longer ift they crash but when. She does not wantthe situation to get to this point. She further stated the cost ofboth servers, labofapd'hardware, will cost $44,710.00 and the city's portion (20%) would be $8,942.00. Thecity'sp portion would not have tol be paid in this budget year the paymeht.çouldbe extended to 2027. She wanted to remind the Elected Officials that the current servers (City Hall and Police Department) are 4 to 5 generationsbehind, they wereoutdated in 2023. This leaves Mayor Hayes stated she understandsithec city'sServers are outdàted and need to be replaced. She wanted to ensure that thecity would not have to pay,20% out oft the FY 2025 Budget. Mrs. Ivey said, "that is correct." Councilmember Underwood said," the city does aN-la920Mbye. next year, and we won'th have itin 2027." Councilmember Boston-said the city.does not have the money and it was not budgeted for the servers. Headded that heis.still concerned that the city is spendingmoneyt they do not/will nothave. Councilmember Kelly asked, "the city does nothave the audits completed,will we qualify for this grant."N Mrs. Ivey stated, "yes," she has researched the city and the specifics and the city would qualify." Councilmember Kelly asked, "was there a grant or any funds to help the city with the-20% match.Mrs. Iveysaid she feltthere was funding, and she would look into it.- Councilmemberkely saidshe does'not see how the city can afford to replace the server.without eliminating some employee jobs or cutting salaries. Mrs. Ivey stated the deadline toapply for this grant was January 20, 2025 which is MLK Holiday and thecity would be closed. The Mayor and Council took no action. Councilmembers Boston and Kelly stated they needed to look at a few things and The Council voted/ to advertise and hire a grant writer. The motion to advertise, hire and have the grant writer's salary be deducted from the grant was made by Councilmember Kelly and the second was added by Councilmember Boston. Federal Government and the municipality's match is 20%. the city'sinformation vulnerablétoattacks: and hacking, theywould be intouch. Vote: 3-1: Motion Carried. Members voting favorably: Boston, Underwood and Kelly. Member Abstaining: Mayor Pro Tem Lovette. 5. City of Walthourville Mayor Sarah B. Hayes Allenhurst Fire Fee Update. Mayor Hayes stated the proposed Fire Fee is $25.00 per household. She stated Allenhurst has shopped around, they have contacted Liberty County and Hinesville because they thought they could get a better deal. 5 The Town of Allenhurst have not had an opportunity to inform their citizens about them paying a Fire Fee. More information will be forthcoming when a date is scheduled for the citizens meeting. 6. City of Walthourville Mayor Sarah B. Hayes Stated the city needed to find another auditor. The firm ofDeal, Lanier and Proctor were no longer going to serve the city. CKH recommended the firm of James Moore. They are based in Florida and have multiple municipalities they audit. No action was taken on this firm because the council wanted to know how far Deal, Lanier and Proctor had gotten on the auditsN Mayor Hayes will obtain this information and inform the council. 7. City ofWalthourville Councilmembers Councilmember Boston stated he hasspoken to the Department Heads in both the Fire Department and Public Works. The city has several(7) vehicles that he would like to move forward in selling, Thevehicles identified andthe price are as follows: Ford Ranger-Mosquito Truck 2-FI50's 2-Garbage Trucks Ford Bronco (Fire Department) Crown Victoria (Fire Department) $2,000 $2,000 $4500& $6500 $5,000 $60.000(old) and $100,000(pew) Attorney Moses asked thecouncilhow were theyp proposing to sell these vehicles? Several councilmembers said by auction. Attorney Moses stated the sales could take placé by 1.Sealed Bids, 2, Live Bids,ând 3 Online Sale. Mayor Hayes stated with beagovernment entity thebestideal wouldbe toj post on Gov Deals. Also, the newest garbage truck, the city stillsowes on that vehicle and does not have a clear title. The city's newer garbage truck was removed from the sale. The motion to move forward with sellingthese vehicles, excluding the garbage truck that the city owes was made by Councilmember Boston and the second was added by Councilmember Kelly, Vote: 3-1: Motion Carried. Members voting favorably: Boston, Underwood and Kelly. Member opposed: MayorPro Tem Lovette. IX. Department Reports Water Department Had no report Fire Department Mr. Patrick Golphin ChiefNicolas Maxwell Reported the Fire Department answered 745 calls in 2024, which wasa 5% drop. Also, The city is no longer answering calls to the unincorporated area ofLiberty County. Thus far the department has received 72 calls, 49 ofwhich have been medical calls. Reported the Police Department will begin having Neighborhood Watch Meetings. BINGO for Senior Citizens will begin on February 7th. He added the hours for the Police Department being open are 8:00 AM-5:00 PM, Monday-Friday. Chief Reed Police Department ChiefChristopher Reed 6 further added that all officers are dispatched from 911 and not from calling the office. The substation located at 1457 Dunlevie is open and utilized by the department. The technology fee yielded $13,500 ini revenue for 2024. X. Citizens Comments XI. Council Comments None Councilmember Boston: stated the budget needs to be reviewed, again and the city should be placed on a hiring freeze. He said the county reached out to him about the Councilmember Underwood: stated he agreed with everything Councilmembers Councilmember Kelly-stated she has been saying the city needs to have more than one bank. Mayor Hayes asked why, she said, if the city needed toborrow money, they would have more than one option. Shesaid she wôuld like the City's Fire Fee to be opened at a different bank-They identified that the Queensborough Bank would be the bank to open the Fire Fee Account. The motion-was made by Councilmember Kelly and the second was addedby Councilmember Boston. With both Boston and Kelly being authorized signers and_having financial access, City Clerk Moss asked if they would liket to open the account. This question-was: askedsot there would be no ambiguity landfill bill. Boston said. The line items need to be looked' at within the budget. about the account. XII. Mayor's Comments: Mayor Hayes XIII. Executive SasAdPMaraane enteri into Executive Session for Personnel and Real Estate was made by Councilmember Kelly and the second was added by Mayor Pro Tem.Lovette. XIV. Adjournment: At8:56 PMa amotion to adjourn was made by Councilmember Boston andthes second was added by Councilmember Kelly. 7 ACCG Advancing Georgia's Counties. 191F Peachtree Street! NE, Sute7 700-A Allanta, GA30303 GEORGIA MUNICIPAL ASSOCIATION 201 Pryor Street, SW. Allanta, GA30303 ASSOCIATION COUNTY COMMISSIONERS OF GEORGIA & GEORGIA MUNICIPAL ASSOCIATION HB 581 (2024): Frequently Asked Questions Document The Local Opt-out Floating Homestead Exemption & Floating Local Option Sales Tax (FLOST) House Bill 581 was passed byt the Georgia General Assembly during the 2024 legislative session HB 581 provides for several significant changes impacting local government revenue. Counties and cities must understand these changes and be prepared to make critical decisions int the coming months that will have lastingi impacts. In general, HB 581 has three major components: first, the bill provides for some procedural changes to property tax assessments and appeals; second, thel bill provides for ar news statewide homestead exemption that applies to local governments unless the local government affirmatively opts out; third, thel bill creates ar new local option sales tax available This document provides frequently asked questions (FAQs) to give an overview of the key provisions of thel bill, the statewide homestead exemption and new local option sales tax, and the considerations local governments must have in mind. Appendix, At then includes an outline oft these and was signed into law by Governor Kemp on April18,2024. to be used1 for property taxi relief. key provisions tol help guide local decision making. A. Generally 1. Inanutshell, what is HB! 581 (2024)about? HB 581 contains multiple provisions related to property tax and sales tax. Most relevant to this FAQ, the bill: a. Grants as statewide homestead exemption1 that limits thei increases int thet taxable value ofh homes to no morei thant thei inflation rate that occurred over the prior year; b. Allows local governments to elect to opt out of this homestead exemption within their jurisdiction: so that it will not apply to their taxable values; and Authorizes most local governments witht the new! homestead exemption (or equivalent) tol levy a new sales taxt tol be usedi for property taxi relief. HB 581 (2024): Frequently/ Asked Questions Document 2. Where did this proposal come from and what was the reason? Entering the 2024 legislative session, many! legislators were concerned with the rapid risei in property values across the state, andi int turn, the risei in property taxes. The homestead exemption proposal came from the General Assembly and was first introduced in the Senate. The reason was to provide more certainty to homeowners who are concerned about the significant increases to the taxable value of homes in recent) years. Under this bill, ift the local government does not opt out, thent the homeowner knows their value may not increase by more than the rate ofi inflation, which The sales tax provision (FLOST) came from the House and was originally designed as at flexible new sales tax to acti in place of sales tax laws written to apply to only one. jurisdiction, such as that for the Coliseum SPLOST for Augusta-Richmond County; however, it changed throughout the legislative process to become a method to reduce millage rates imposed on all properties prevents large jumps and helps them budget. (homestead and non-homestead). B. The Homestead Exemption of HB! 581 1. What type of homestead exemption does HB 581 provide? Ist there a difference between floating, base-year, adjusted base-year, and frozen homestead exemptions? The core purpose of any base-year, floating, or frozen homestead exemption is to reduce or eliminate thet taxi impact of increases in the fair market value of al homesteaded property that occur following the purchase of al home. Thei terms are generally synonymous and used to describe either the practical or technical effect of the exemption. The key difference is whether such an exemption allows for adjustments to the base year value based on a standard rate or thei inflation rate. Fora al base-year, floating, or frozen homestead exemption without an adjustment factor, the value of the exemption changes or floats eachy year to always equal and exempt thet full difference between the base-year value of the home and the current value of the home, sO that thet taxable value of thel home never increases (but the millage rate may stilli increase). These are most often calledi frozen exemptions because the assessed value of the home is blocked fromi increasing (and For al base-year, floating, or1 frozen homestead exemption with an adjustment factor, the base year and the base year value for al homestead does not change, but the base year value is adjusted annually by a percentage equal to either a set rate or thei inflation rate that occurred during the prior Int the case of HB! 581, practically speaking, the homestead exemption limits the amount of any increase int the assessed value of homes to no more than the rate of inflation experienced over the prioryear-it does not freeze the value. This is best described as an adjusted base-year homestead exemption, because it grants an exemption equal to the difference between the homestead's adjusted base-year value-generallyi the value for they year prior toi the homeowner's application for the exemption plus an inflation factor for eachy year sincet the exemption was first granted--and the often, from decreasing). year. These are best called adjusted base-year homestead exemptions. current year's true value. 2 HB 581 (2024): Frequently Asked Questions Document Itisi important to note that most of these homestead exemptions do account for substantial changes in the property. For example, ifa al homeowner doubles the size of their house, thent the base-year value may bei increased, regardless of any freeze or limitation, butt thereafter, the new base-year value enjoys the benefit of the exemption. Also important to note, these exemptions do not stay with the property nor the property owner when a change in ownership occurs. Ifan individual sells their home, thet taxable value of that home resets toi fair market valuet for the next owner. Similarly, the individual cannot carry the value of the exemption toi their new! home. 2. Howi is the value of the HB 581 homestead exemption determined? The value of the exemption is unique to eachi individual property and will generally change each year for such properties. The core purpose of al base-year or floating homestead exemption is to reduce ore eliminate thei impact ofi increases toi thet fair market value of a homestead. In the case of HB! 581, the homestead exemption prevents rapid increases int the assessed value of homes but HB 581 is considered an adjusted base-year homestead exemption, because it allows the homestead's base-year value to increase annually by up to thei inflation rate determined by the State Revenue Commissioner (likely the consumer price index) which occurred during the prior year. The value of the exemption is the difference between the adjusted base-year value and the fair market value. Even ift two properties begin with identical base year values, ift the fair market value oft the properties diverge over time, thent the property with the higher fair market value will receive the larger exemption while potentially paying the same inj property1 taxes. does not freeze the value. 3. Ifmyl local government wants to opt out of the HB 581 homestead exemption, how can we As authorized through a constitutional amendment (HR 1022 (2024) and outlined in HB 581, the opt-out process is very similar tot the' "public notification of taxi increase" process that is required when al local government does noti fully rollbacki its millage rate. The local government seeking to opt out of the HB 581 homestead exemption must advertise and hold three public hearings ofi intent to opt out, and then pass a resolution opting out andi filei it with the Secretary of State. The process may not begin until the effective date of the bill on January1,2025,6 and must be completed by March 1, 2025. Each local government (county, city, school) mayi independently make the decision whether to opt out; any combination may electi to do nothing or opt out of the HB! 581 floating homestead exemption. Ifal local government opts out, its taxpayers will not receive the benefit of the exemption, and their property will bet taxed (absent other exemptions) at the property's fair 4. Should my local government opt out of the homestead exemption if we already have another form of at floating, base-year, ort frozen homestead exemption? There are at least af few things to consider when answering this question for your) jurisdiction. First, howi far does your current floating homestead exemption extend? Does it cover all millage rates, including those for special districts? The reason that thisi isi important to answer is that the HB! 581 homestead exemption extends to all millage levies except for any bond levies. do that? market value. 3 HB! 581 (2024): Frequently Asked Questions Document Second, does your current homestead exemption incorporate any form ofi inflationary or automatic increase? The value of the HB! 581 homestead exemption for each homeowneri is, in effect, reduced annually byt the amount of inflation that occurred over the priory year, which allows thet taxable value of the homestead to rise over time in-line withi inflation. Ify yourj jurisdiction has a set rise over time thati is expected" to exceed thei inflation factor in HB 581, then your jurisdiction may want to opt out. Third, ift the homestead exemptions are equivalent, your may want to consider opting out oft the HB 581 floating homestead exemption to reduce confusion. Yourj jurisdiction would still have access to the new sales taxi for property taxi relief (FLOST) assuming all the conditions to impose the tax are 5. Does the HB 581 homestead exemption apply to communty/mprovement districts For all practical purposes, the homestead exemptions would not apply to CID's as CID's may only 6. How does the HB! 581 homestead exemption affect tax allocation districts (TADs)? The homestead exemption could potentially reduce the amount of expected property tax revenue growth withinthe TAD by limiting the assessed value increase of homestead property over time. 7. Can the HB 581 floating homestead exemption bel later repealed for my county or city? Ifaj jurisdiction elects not to opt out of the HB 581 homestead exemption, they will not have an opportunity to opt outi int the future and will have thel homestead exemption permanently. There may be a method to remove: such) jurisdictions in the future, buti it would require a change to general 8. Will the HB 581 homestead exemption affect al homeowner's existing homestead HB 581 does not eliminate any existing homestead exemptions for anyj jurisdiction, regardless of thet type of homestead exemption, but itr may override existing floating, base-year, andi frozen exemptions, ift thel HB 581 exemption provides a greater benefit toi the taxpayer. a. Ifyour local government has an existing non-floating homestead exemption, such as an exemption for $5,000 of assessed value, that will be unaffected byl HB 581. The floating homestead exemptioni is calculated first, and thent the non-floating exemptions are calculated on the back end. That said, ift the existing, non-floating local homestead exemption says thati it may not be applied in addition to any other homestead exemption, b. Ifyour local government has an existing base-year homestead exemption, then the taxpayer will receive whichever provides them with the largest benefit in any giveny year. Your tax assessor's office will be responsible for tracking both floating homestead exemption values met. (CIDs)? levy taxes on nonresidential property. Ga. Const. Art. IX, Sec. VII, Para. III(c). This question requires analysis specific to the TADI in question. law or a constitutional amendment done by the legislature. exemptions? then it may not be applied. in addition tot thet fair market value. 4 HB 581 (2024): Frequently Asked Questions Document For example, iftherei is an existing base-year or floating homestead exemption that does not havei inflationary! increases, then it would generally provide the larger benefit to the taxpayer. Similarly, ift the base-year of al homestead exemption that is comparable to HB 581 pre-dates HB 581's base-year, then the older base year will likely provide the larger benefit. 9. Willi ita affect the county's ability to impose al FLOSTifa another city opts out of the Yes, ifa a city thati imposes a propertyt tax opts out, then the county and all cities within the county will be ineligible fort the FLOST. Ifa a city that does not levy a property tax opts out, then it would not affect the ability for the county to levy a FLOST. If even one city that opts out does levy a property tax at such time, then the FLOST would not! be permitted. Of course,. jurisdictions may opt out and not impact eligibilityi if the jurisdiction has another eligible homestead exemption in place. homestead exemption granted by HB 581? 10. Ifthe county opts out of the homestead exemption will this impactar municipality'sabitity Yes. Similarly, ifa county opts out all municipalities in the county will bei ineligible fort the FLOST toi impose a FLOST? unless the county! has another eligible homestead exemption in place. 11.lfamunicipauty or a county opts out oft the HB 581 homestead exemption will homesteads have multiple assessed values fort tax assessment? Yes, ift the homestead exemption applies for some but not allj jurisdictions, the taxable value of the property will essentially be different. The fair market value of a property is the same for all taxing jurisdictions where the property is subject to property tax. Homestead exemptions are applied after thei fair market value of the home is determined and reduce thet taxable value of thel home- thet taxable value may be different amongjurisdictions based on applicable homestead exemptions. Every county assessor's office is required to maintain a set of books with the fair market value oft the property. The assessor's office will be required to maintain two or more: sets of values if there are one or more floating homestead exemptions. Each homestead may have a different base-year value across multiple. jurisdictions, but this will be tracked by the assessor's office. 12. For al home that has an exemption under HB 581, what happens if the home is substantially improved or is destroyed? How are changes to the home's value that do not Substantial changes toi the property are considered when assessing the property. Any substantial Example: The adjusted base yeary value of al home as of. January 1, 2028, was $500k. During 2028, the homeowner doubles the square-footage of her home and adds a swimming pool. As of January 1,2029, the tax officials fort the county determine that the changes to the home increasei the value by $200k. The adjusted basey year value fort the 20291 taxy year = $500k (the 2028 ABYV) + $200k result from marketi forces handled? change will increase or decrease the adjusted base year value of the home. (substantial change value) + any applicable inflation factor. 5 HB! 581 (2024): Frequently Asked Questions Document 13. Ifr my local government opts out of the floating homestead under HB 581, can we opti in at Ifyour local government opts out, there is no future opportunity for the local government to However ,al local government may: still obtain as similar homestead exemption in a traditional manner. The General Assembly may pass al local Act creating an equivalent local floating homestead exemption. This would require 2/3's vote int the General Assembly and al local referendum. The General Assembly may do this against the will of the local government. We encourage you to maintain a dialogue with your local legislators, especiallyi if youi intend to opt al later date? unilaterally opt-in or rejoin the HB 581 exemption. out. 14. Ifmy local government opts out of the HB 581 floating homestead exemption and our legislative delegation disagrees with that decision, can they take action to mandate the Ifyour local government opts out of the HB 581 floating homestead exemption and your legislative delegation disagrees with that decision, your local delegation can pass al local Act to impose a floating homestead exemption within thej jurisdiction. HB 581 has not changed the ability of the legislature to create specific homestead exemptions for local governments. This local Act would be subject to 2/3 vote ini the General Assembly and approval by the voters in al local referendum. Ift the referendum is successful, theny your local government would be subject to the homestead exemption provided fori in the local Act, even though you opted out of the HB 581 exemption. Note: Al local government could elect to opt out oft the HB! 581 exemption and ask their local delegation to proceed with a more customized version of the homestead exemption. rloatinghomestead exemption on my local government? 15. Cant the floating homestead exemption be transferred to a new owner of the home? No, the homestead exemption is not portable or transferable-iti ist tied both to the property owner and the home. However, in the case of a surviving spouse who was not on the deed at the time of their spouse's death, said surviving spouse may continue the homestead exemption in the same manner as the deceased spouse, provided that the surviving spouse is otherwise eligible for the For anyone else that acquires thel home as al homestead, the base-year and base-year value will be reset to the year prior tot the person's acquisition of the home and to the actual value fori the home homestead exemption. fors such prior year. 16. How much land can be included in a qualified floating homestead exemption? Georgia state law states that the homestead exemption applies tot the homestead and the land immediately surrounding the homestead; there is no specification for acreage. Many local homestead exemptions do limit the total acreage. Itis likely upt to local interpretation as to what 6 HB 581 (2024): Frequently Asked Questions Document land constitutes the land "immediately surrounding" the homestead. The exemption would not include buildings or structures ont the property, which are not part of the homestead dwelling, itself. 17. Does thel HB! 581 floating homestead exemption apply tos special service districts? Yes, the HB 581 floating homestead exemption applies to all millage rates except for millage rates Point to consider: Ifthe local government has an existing floating homestead exemption that does notapply to special service districts, then you mayy want to consider opting out, sO your special to retire bonded indebtedness. service district millage levies are unaffected. 18.lfahomeowner's assessed value was locked following their appeal to the Board of Equalizationi in 2022, would that value be used fori the 2024 base year for the purposes of The homestead's final assessed valuei fort the base year is the base) year value for the purposes of the HB 581 exemption. Code Section 48-5-44.2a/3)A). Accordingly, ifthe locked assessed value from 2022 is what was lawfully used as the homestead's final assessed valuei for 2024, then that taxpayer would have their HB! 581 2024 base year assessed value set at that same amount. 19. Will the market value or the adjusted base year value be used when calculating value increases to thet tax digest that are factored into the rollback millage rate that cannot be The digest value for rollback purposes utilizes the net taxable digest, which is the value of the digest the HB 581 exemption? exceeded without advertising at taxi increase? after exemptions are accounted for. 7 HB 581 (2024): Frequently Asked Questions Document C.T The Floating Local Option Sales Tax (FLOST) 1. Generally, whati is the FLOST? The Floating Local Option Sales Tax or FLOST (named fori its relation to thet floating homestead exemption) is a news sales tax that can be levied up to 1 percent and collected county-wide. Funds are split between the county and cities based upon an intergovernmental agreement (IGA) and used for property taxr relief. 2. What are the minimum requirements for a given county or municipality to be eligible to levya a FLOST? a. The county or municipality must levy a property tax and have al base-year or floating b. All other municipalities within the county that currently levy a property tax must also have al base-year or floating homestead exemption in effect?; C. The county or municipality must have available room under the overall sales tax cap3; d. The county and the applicable number of municipalities must enteri into an intergovernmental agreement as required under Code Section 48-8-109.310)0)6; Utilize the proceeds for property taxr relief andi in accordance with the IGAS. homestead exemption ine effect'; e. Hold as successful local referendum4; and 3. Who must sign the intergovernmental agreement to authorize the referendum for the The county must reach an intergovernmental agreement with municipalities levying a property tax that represent at least 50% oft the total municipal population within the county. This minimum requirement does not preclude more municipalities than those representing 50% of the municipal Any municipalityt that does not sign the IGAI is treated as an absent municipality" and will receive proceeds from the FLOST based upon the size of its population relative to thet total municipal population within the county, excluding any municipalities that do notl levy a property tax. Municipalities that do not levy a property tax are excluded from the calculations and from FLOST? population from signing thel IGAI if all parties agree. sharing in FLOSTI revenues." 'Code Section 48-8-109.31(0,0)A- 2Code Section 48-8-109.31(0,0)A)- 3Code Section 48-8-6(a). 4Code Section 48-8-109.32. 5Code Section 48-8-109.42. 6Code Section 48-8-109.31(0,0)A. 7Code Section 48-8-109.31(d)2). 8 HB 581 (2024): Frequently Asked Questions Document 4. What must an IGA to levy FLOSTi include? a. Ther rate oft the tax: incremental in .05% increments up to at full 1.0%; d. The distribution schedule'apportoning proceeds among: b. The duration of the tax: up to 58 years; C. Provisions for callingt the referendum fort the tax, including the question for the ballot; i. County ii. Municipalities iii. Absent Municipalities e. Thel IGAI is not required to specify how property tax relief is to be applied but may do: SO. 5. Howi is the sales tax referendum scheduled? First, there must be a valid intergovernmental agreement between the county and cities specifying the distribution oft thet tax. Next, the county may call for the sales taxi referendum similar to other 6. Is al local referendum necessary to impose the FLOST eveni if the ballot measure in Yes. Iti is important to note that the ballot question in November of 2024 proposes a constitutional amendment which enables the homestead exemption. Ifthis amendment is not approved, all of HB 581 (including the FLOST) is repealed. If1 the constitutional amendment is approved, as subsequent referendum within the county is still required to levy the FLOST. Counties and cities should be mindful that the FLOST must be approved by voters ini the county to be levied when making policy sales taxi referenda." 10 November is successful? decisions concerning the homestead exemption. 7. Does FLOSTI revenue affect the rollback millage rate that is calculated for the purposes of Code Section 45-5-32.1 (Taxpayer Bill of Rights), which requires the advertising ofa Yes. Unlike LOST, thet total amount of FLOST collected int the preceding calendar year must be subtracted from the millage equivalent calculated to provide thej jurisdiction with the same net proceeds from the current year's net taxable digest value as those derived from the previous year's propertytaxi increase, if exceeded? millage rate when multiplied by the previous) year's net taxable digest value. Code: Section 48-8-109.32(a). 9Code Section 48-8-109.36(2). 10 Code Section 48-8-109.32. 9 HB 581 (2024): Frequently Asked Questions Document 8. What cant the FLOST revenues be used for? FLOST revenue must be used for property tax relief. Per Code Section 48-8-109.42, FLOST revenues: "[S]hall be used exclusively for tax relief andi in conjunction with all limitations provided in thei intergovernmental agreement authorizing thet taxt for such political subdivision." Additionally: "Each taxpayer's ad valorem tax bill shall clearly state the dollar amount by which the property tax has beenreduced as ar result oft the imposition of the taxi imposed "The roll-back rate for the political subdivision, whichi is calculated under Code Section 48-5-32.1[ [Taxpayer Bill of Rights], shall be reduced annually by the millage equivalent of the net proceeds of thet tax authorized undert this article, which proceeds were received by the political subdivision during the prior taxable year." under this article"; and 9. Inwhat ways may the local government calculate and apply the FLOST propertytaxr relief Outside of the parameters in Code Section 48-8-109.42, jurisdictions have latitude to apply the funds for legal purposes within the special district and as may be provided fori in the tot the property tax bill? intergovernmental agreement. Thet tax relief must be applied uniformly across alli forms of tangible propertywithint the given taxing jurisdiction for which it applies. For these purposes, taxingj jurisdictions for which propertyi taxi relief may be granted can be the county, a municipality, or a special district, provided that the application is uniform within the given taxing jurisdiction. When the credit or reduction is shown ont thet taxpayer's property tax bill, it MUST be applied as property taxr relief, which would be a reduction in a charge that is assessed and levied upon the value of a property. The credit cannot reduce any charge or fee, which is not levied upon the value of the property (ad valorem). Ifai flat dollar amount is shown ont the property tax bill, said dollar amount must be derived from the taxpayer's savings from ther reduction While not required, the best practice is to include within the required IGA exactly how the int the millage rate or assessed value. proceeds of the FLOST will be applied as property tax relief. 10. What types of communities would benefit most from a FLOST? Communities that wish to supplant property taxes with sales tax would benefit from FLOST. Itisa policy decision that would be expected to shift some of the tax burden imposed on the local government's property owners to those who make purchases within suchj jurisdiction. Accordingly, communities with sales taxi revenues derived disproportionately from those living outside oft the local government's jurisdiction would expect to see a net benefit fori its property owners by shifting the tax burden to consumers; whereas those communities that have disproportionately few property owners among its many resident consumers would find only a shifting of thet tax burden within thej jurisdiction. 10 HB 581 (2024): Frequently Asked Questions Document 11. How often does the FLOST have to be voted on? FLOST may bei implemented for up to 5y years at at time, SO at least every 5years. Moreover, all FLOSTI renewals require al local Act of the General Assembly, sO therei is no renewal without al local Act and a new IGA, and passage in al local referendum. 11V While there is no requirement of al local Act toi initially levy the FLOST any subsequent renewal does require a local Acti from the General Assembly. 12. My county doesn'thave al LOST. How willt this affect my county, city, etc.? Having al LOST is not a requirement for the FLOST. LOST ist the most similar sales tax to the FLOST, but the way property1 taxr relief is calculated under FLOST is more flexible than LOST. 13. Does this bill require the Department of Revenue to provide point-of-sale information? This bill does not require DOR to provide point ofs sale information but does require such information to bet furnished to DORI by the retail establishments that are required to collect the tax. All sales for FLOST occur countywide (within the special district which is conterminous with the boundaries of the county), except in the case of a county containing ar municipality that levies the Water and Sewer Projects Cost Tax (MOST), inwhich case thel FLOST is not collected withint the boundaries oft thel MOST city. 14. Are Water and Sewer Projects Cost" Tax (MOST) cities ineligible for a FLOST? Yes, the cities that levy al MOST1 tax are ineligible tol levy or receive proceeds from FLOST. This means that they are not counted when determining the municipal population in the county levying the LOST, the cityl levying the MOST cannot share int the proceeds of the FLOST, and the FLOST may not be levied within the municipal boundaries of the city levying the MOST. Currently, the MOST cities are: Atlanta, East Point, College Park, and Hapeville. 15. Ifthe school board opts out of the floating homestead exemption, can the county and Yes, ift the school board opts out, you can still levy the tax assuming all other requirements are met. Schools generally cannot receive revenues from sales taxes other than those authorized by the Constitution (ESPLOST) and certain existing Local Constitutional, Amendments (ELOSTS), soi it would require such a constitutional amendment speclicalyauthorzing or requiring that school municipalities still levy the FLOST tax? districts receive as share in the FLOST. 110 Code Section 48-8-109.33(c) 11 HB 581 (2024): Frequently Asked Questions Document 16. Ifmyj jurisdiction opts out of the HB! 581 floating homestead exemption and has an existing base-year ori floating homestead exemption, but which only applies to the general maintenance and operations (M&O) levy, would myj jurisdiction bel blocked from No, not on that basis alone. Ify your local government has an existing floating or base-year homestead exemption of any kind, you may still qualify for the FLOST, eveni ify you opt out of the HB 5811 floating homestead exemption. HB 581 only requires that you have some form of a base-year orf floating homestead exemption top participate in FLOST. Such exemption can either be al local floating homestead exemption (predating HB 581 or added after) or the HB 581 floating homestead exemption. Please note that the HB 581 floating homestead exemption will apply to all levies, participating int thel FLOST? including special service districts, except for bonded indebtedness. 17. If my county or city decides to opt of the homestead exemption, isi it forever ineligible to No. First, your city or county may already have al homestead exemption in place making them eligible for the FLOST. Second, if there is no homestead exemptioni in place and your county or city opts out, it can once again become eligible to levy thel FLOST ini thei future through a subsequent eligible homestead exemption put in place by al local Act oft the General Assembly. levy the FLOST? 18. What happens if we pass al FLOST and our legislative delegation does not approve the Ify you pass al FLOST and your legislative delegation does not approve the renewal or the voters do not renew it, then the most likely outcome is an increase in the applicable millage rates. Since FLOST is sales tax being used to offset property tax, if the FLOST expires, the local government will renewal, or the voters do not renew it? have to cut expenses, raise propertyt taxes, or some combination thereof. 19. If my county has an ELOST, can we utilize the FLOST? Ifyour county has an ELOST, the availability of FLOST depends on af few factors: a. Does the exact verbiage of the local constitutional amendment (LCA) limit the distribution of proceeds in the way that FLOST requires? Some of the LCAs are very permissive, and others are very restrictive. Please consult with your localj jurisdiction's C. Does thej jurisdiction have sufficient room underi its local sales tax capi to levya FLOST? ELOST Counties: Habersham County; Chattooga County; Catoosa County; Harris County; Pickens attorney for al legal opinion. See Code Section 48-8-6(a). b. Is thej jurisdiction otherwise eligible tol levy a FLOST? County; Walton County; Houston County; Towns County. 12 HB 581 (2024): Frequently Asked Questions Document Appendix A: HB 581- Timeline/Decision Tree 1) November 5, 2024: Statewide ballot measure determining approval of constitutional a) Ifthe ballot question is not approved, HB 581 is repealed ini its entirety. No further action is needed by local governments. All other property tax changes andi the b) Ifthel ballot question is approved, counties, cities, and school boards may independently determine whether they would like to "opt out" oft the homestead exemption and not have the exemption applyt to their homeowners. 2) Beginning. January 1, 2025 through March 1, 2025, local governments may" "optout"and not have their homeowners receive the HB 581 floating homestead exemption. a) Ift the local government decides notto "opt out" no action is required by the local government and the homestead exemption will go into effect. amendment enabling homestead exemption. FLOST are repealed as well. The HB 581 homestead exemption does not replace existing locally enacted (1) Ifyour local government has an existing flat dollar homestead exemption, (2) Ifyour local government! has an existing base year or adjusted base year exemption, the taxpayer will receive the more beneficial exemption. b) Ifyour local government decides to opt out, it must advertise and hold three public hearings of intent to opt out, and then pass a resolution opting out and file it with the homestead exemptions. the 581 exemption will be in addition to that exemption. Secretary of State by March 1, 2025. 3) Ifthe November 2024 ballot question is approved, your county or city may decide whether to levy a FLOST for property taxi relief. You must determine if you are eligible for a) Ifyour county/city does not levy a property tax, you are not eligible to the FLOST. levy/participate int the FLOST. b) Ifyoulevyar propertytax: Your county/city must have a base year or adjusted base year homestead *This may either bei the homestead exemption provided by HB 581 oran existing base year or adjusted base year homestead exemption created bya ii) The county and every municipality ini the county that levies a property tax must also have a base year or adjusted base year homestead exemption in place (HB exemption in place. local. Act. 581 or existing). 13 HB 581 (2024): Frequently Asked Questions Document ili) Ifthe county or any cityt that levies a property tax does not have an eligible homestead exemption in place, the county and all cities within are, not eligible The county and city or cities representing at least 50% of the municipal population of cities levying a property taxi must sign an intergovernmental agreement (IGA) for the levy of the tax. This IGA will set the rate (up to 1%), duration (up to 5years), distribution of proceeds among the county and cities, ii) The levy oft the FLOST must be approved by the voters across the county ina d) The FLOST may then be levied for upi to 5y years before needing to be renewed. Prior to the expiration of the tax a renewal requires: Al local Act by the Georgia General Assembly approving the renewal for the jurisdiction, a subsequent IGA between the eligible county and cities, and a subsequent referendum for the voters to approve for the FLOST. c) Ifthe eligibility criteria is met: and the ballot question to be used. referendum. the renewal of the tax. Disclaimer This publication is fors general informational purposes only. Whiles some oft thei information containedi int this publicationi isa about legal issues,i itisr not ands shouldr not bet treated as legala advice. Yous should consult with your legal counsel before takinga action based ont the information containedi int this publication. 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