MANSFIELD, Ga. – While a number of governmental entities in Newton County are looking to opt out of House Bill 581 (HB581), the city of Mansfield does not seem to be following suit.
HB581, also known as the Save the Homes Act, was passed by the Georgia General Assembly last April and voted in by the majority of Georgians in November. Newton County residents sided with Georgia, voting ‘yes’ at 59.98 percent.
The bill creates a floating homestead exemption designed to provide property tax relief, albeit with stipulations and exemptions. It essentially freezes property tax rates from increasing beyond the rate of inflation for the next few years as long as there are no substantial property improvements.
The passed legislation included an opt-out clause for all government entities. Those that wish to do so can opt out by March 1. They must hold three public hearings with stipulated times before passing a resolution to opt out.
Many of Newton County’s boards/councils are considering opting out due to the significant projected revenue loss that the bill would create. Previously, chief financial officer of Newton County Schools, Erica Robinson, told the public that the school system was estimated to lose over $30 million by 2029.
However, Mansfield mayor Blair Northern, who presumably runs the Facebook account for the city of Mansfield, stated that the city would remain opted in to align with what Georgians wanted.
“HB581 is law. The voters of Newton County and the state voted for it,” the Facebook post read. “If you have concerns as a resident of Mansfield with this law please email me at [email protected] or contact any council member to express your concerns with it.
I will recommend to the council that we take no action to opt out. By taking no action to opt out we are in agreement with the will of the ga [sic] voters.”
One relief that governments in the county could see, should each government decide to opt in, is the Floating Local Option Sales Tax (FLOST). This would allow governmental entities to potentially receive an alternate source of funding through a local sales tax, alleviating the projected tax vacuum that HB581 could create.
However, all governments in the area must be opted in to HB581 in order to implement a FLOST.
As it currently stands, Mansfield is the only city that has announced its intent to opt in. Covington, Oxford, Newborn and Social Circle are all holding public hearings to consider opting out of the bill. The city of Porterdale has not released its plans as of this writing.
The Newton County Board of Education has held one public hearing to date, with at least two of its board members strongly supporting the move to opt out. The Newton County Board of Commissioners has yet to announce any public hearings, though they did hold a work session on Jan. 16.
