What is House Bill 581/Statewide Floating Homestead Exemption Act?

  • A law that changes how property taxes work for cities, counties, and schools that creates a "floating homestead exemption," which affects school districts by putting a limit on how much property taxes can go up based on the rate of inflation.

  • House Bill 581 is effective January 1, 2025 - the Constitutional Amendment passed the statewide referendum in November, 2024.

  • City of Richmond Hill, City of Pembroke, Bryan County Government, and Bryan County Schools have a one-time chance to opt out of this limit by March 1, 2025.

Potential Impact on Revenue for Bryan County Schools

  • If House Bill 581 had been in effect for fiscal year 2024, Bryan County Schools could have lost upwards of 3.5 million dollars.

  • What does 3.5 million dollars look like in Bryan County Schools?

    • Teachers carry an average cost of $100,000 (salary and benefits) - that equates to the loss of funding for 35 teachers, which would have resulted in the Bryan County Board of Education being forced to increase the millage rate to offset that loss.

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House Bill 581

The City of Richmond Hill, City of Pembroke, Bryan County Government, and Bryan County Schools

  • Each governmental entity must make a decision whether to opt-out by March 1, 2025.

  • If the City of Richmond Hill, City of Pembroke, and/or Bryan County Government decide not to opt-out, by law, they are allowed to add up to an additional penny of sales tax to offset any potential losses incurred by not opting out of the statewide floating homestead exemption (HB581).

  • Unlike the City of Richmond Hill, City of Pembroke, and Bryan County Government, Bryan County Schools by law, DOES NOT have the ability to add up to an additional penny of sales tax to offset any potential losses incurred by not opting out of the statewide floating homestead exemption (HB581).

House Bill 581 and Potential Long-Term Impacts

From Bryan County School's perspective as a high growth school system, House Bill 581 presents potential challenges by using the inflationary rate to annually cap the increase in home property values used to calculate taxes.

  • Property taxes are a critical source of funding for schools (especially high-growth school systems); this limitation may reduce the revenue available to support educational programs, staff, and facilities.

  • While the bill aims to ease the tax burden on homeowners, Bryan County Schools would be forced to explore alternative funding strategies, such as increased millage rates, to address any potential shortfall in revenue if electing not to opt out.

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Negative Consequences

  • High Growth Districts: State funds are calculated using student counts that lag by up to 12 months. These funds are insufficient in high growth districts where student populations are consistently increasing.

  • Funding Limits: A property tax cap would likely reduce the ability to provide adequate educational services through a reduction in the operational funds. Overall, this could lead to fewer teachers, larger class sizes, deteriorating facilities, fewer safety personnel and resources, and a decline in overall educational resources.

  • Millage Rate Cap: State law dictates a millage rate cap of 20 mills for school systems (not including debt-service). Bryan County Schools is currently 15.075 mills. Not opting out of HB581 would require us to increase our millage rate to offset losses. With continued growth, it would be possible to reach the 20 mill cap.

Bryan County Schools and House Bill 581

Given the potential long term negative impacts to Bryan County Schools, the district intends to opt out and as a requirement of state law, will hold three public hearings. This is a permanent, one-time decision that will impact future school boards, staff, students, and community.

Bryan County Schools will hold three public hearings at Bryan County Schools Board of Education office located at 8810 U.S. Highway 280 East Black Creek, GA 31308 at the following dates and times:

  • January 10, 2025 @ 1:00 pm

  • January 21, 2025 @ 6:30 pm

  • January 24, 2025 @ 9:00 am

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