ATLANTA — The City of Atlanta announced Friday it planned to opt out of the statewide homestead exemption program passed in 2024.
The program, established by House Bill 581, would allow municipalities, like Atlanta or various city or county governments, to put a limit on how much a home’s value can be increased each year due to inflation.
The bill also removed estimates of current taxes based on the previous year’s millage rates, or how property taxes are calculated and set a 2% local sales tax limit for different types of special sales tax options.
The legislation set a March deadline for different governments in the state to opt-out of the program, and the City of Atlanta is among several in the metro area that are doing so.
According to city officials, they’re opting out of the program from HB 581 because they already have “property tax policies to better serve Atlanta’s unique needs,” rather than using a statewide program.
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Specifically, officials said that while “HB 581 aims to provide uniform tax relief across Georgia, Atlanta’s decision allows the City to preserve its existing Base Freeze (Floating) Exemption, enacted in 2019 under HB 820 and approved by voters. This exemption caps annual taxable property assessment increases at 2.6%, ensuring targeted and equitable relief for Atlanta homeowners.”
Instead, the city has its own exemption from 2019, which froze Atlanta’s tax base. Atlanta’s leadership said opting out of the program from HB 581 allows them to preserve the policies already in place for city residents, with a property assessment limit of 2.6%, rather than the 2% from 581.
“HB 581′s intent to provide statewide relief is commendable, but Atlanta’s diverse communities require more nuanced and equitable policies. By opting out, we maintain a framework that directly benefits our residents while supporting the city’s growth and prosperity,” Atlanta Chief Financial Officer Mohamed Balla said in a statement.
Due to state statute, there will be three public meetings held at Atlanta City Hall to discuss opting out of the exemption program.
They’ll be held:
- Friday, Feb. 7, 2025, at 10 a.m.
- Wednesday, Feb. 12, 2025, at noon.
- Wednesday, Feb. 12, 2025, at 6 p.m.
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